SMIC 2Q26 Revenue Guidance and 1Q26 Results Update

SMIC reported a 1Q26 gross margin beat and provided 2Q26 revenue guidance (+14-16% QoQ) that far exceeds consensus. Goldman Sachs maintains a Buy rating based on ASP improvements and domestic AI-driven demand.

Key Takeaways

• 1.SMIC issued strong 2Q26 revenue guidance of +14%-16% QoQ, significantly exceeding Goldman Sachs and Bloomberg consensus estimates.
• 2.1Q26 Gross Margin beat expectations at 20.1%, driven by favorable product mix and improved Average Selling Price (ASP).
• 3.Long-term growth prospects are supported by strong demand from domestic Chinese fabless customers and emerging AI opportunities.

Table of Contents

• 1Q26 GM beat; Net income in-line
• 2Q26 guidance Rev beat; GM in-line
• Price Target Risks and Methodology - SMIC
• Disclosure Appendix

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