SMIC stock heads into earnings test after quarterly selloff
Published on 11/11/2026 at 17:02 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSInvestors await quarterly results
- Analysts expect third-quarter revenue to rise 31 percent year over year and 3.65 percent from the prior quarter.
- Gross margin is projected at 26.9 percent, within the company guidance range of 26 percent to 28 percent.
- Management's order visibility and margin outlook will shape the next investor debate.
Semiconductor Manufacturing International Corp. is approaching its third-quarter results with investors focused on whether rising chip demand can offset a sharp recent share-price decline. The company is scheduled to report on Thursday, according to a MarketWatch preview published Tuesday, November 10.
Forecast points to stronger quarter
A Visible Alpha poll of 13 analysts cited by MarketWatch put third-quarter net profit at 396.8 million US dollars, more than double the year-earlier level. Revenue was forecast at 3.12 billion US dollars, representing growth of 31 percent from the same quarter last year and 3.65 percent from the second quarter.
The projected gross margin was 26.9 percent, within SMIC's guidance range of 26 percent to 28 percent. The result will give investors a fresh measure of whether wafer-price increases and stronger demand are translating into sustained earnings improvement.
Demand and guidance in focus
SMIC's global foundry share rose to 5.4 percent in the second quarter from 5.0 percent in the first quarter, according to TrendForce data cited in the preview. Demand for chips used in artificial-intelligence peripherals, server networking and consumer electronics supported the increase.
Investors are also expected to assess management's comments on order visibility and upcoming margins. Co-CEO Zhao Haijun previously said wafer-price increases contributed more to the improving gross margin than product-mix changes, with the effect expected to appear progressively in earnings.
Global semiconductor sentiment has been pressured by doubts over returns from large technology companies' artificial-intelligence spending; current market reports provide broader market context.
The earnings release will therefore be important for testing whether SMIC's recent growth is broadening beyond a strong demand cycle. Revenue, gross margin and the outlook for orders are likely to matter more than the headline profit increase alone.
