China chip stocks rise as AI optimism remains in play

Chinese chipmaking stocks rose on Monday, tracking a rally in their global peers as investors remained largely optimistic over artificial intelligence-driven demand in the sector.

Semiconductor Manufacturing International Corp (HK:0981), China’s biggest chipmaker by production, jumped 5.6% in Hong Kong trade, as did peer Hua Hong Semiconductor Ltd (HK:1347).

In Mainland trade, Hygon Information Technology Co Ltd (SS:688041) jumped 6.4%, while NAURA Technology Group Co Ltd (SZ:002371) added 7.2%.

A strong Friday performance by U.S. chip stocks spilled over into China. The Philadelphia Semiconductor Index had rallied to a record high on Friday on outsized gains in Intel Corporation (NASDAQ:INTC).

Chinese chipmakers have logged strong gains amid persistent optimism over China’s AI capabilities, especially after the release of a new model from startup DeepSeek two weeks ago.

A report over the weekend said DeepSeek was seeking to raise up to 50 billion yuan ($7.35 billion) in its first funding round. The amount stands to become the largest funding round ever by a Chinese AI company.

Earlier reports showed Chinese tech giants Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) lining up to invest in DeepSeek.