Today, during intraday trading, the H - shares of Hua Hong Semiconductor witnessed a remarkable surge of over 13%, climbing to a level not seen in more than four and a half years. Prior to this, Goldman Sachs made a significant move by upgrading its rating on the stock from "neutral" to "buy". Moreover, the investment bank raised its target price by a substantial 28%, setting it at HK$68.1.

Goldman Sachs is of the opinion that several factors have contributed to its bullish stance on Hua Hong Semiconductor. Firstly, the growth opportunities presented by artificial intelligence (AI) applications are substantial. Secondly, the company is enjoying high capacity utilization rates. Thirdly, there has been notable growth among its domestic customer base. Fourthly, the long - term demand expansion driven by the trend of China - made products is a positive force. Additionally, the increased capacity resulting from process node migration has also played a role.

Furthermore, the company's average selling price has improved at a faster pace than initially anticipated, which is a clear indication of the strong market demand for its products.