SMIC's stock surged 5.04% during intraday trading on Wednesday, marking a significant upward movement for the semiconductor manufacturer.

The rebound comes as the chip sector stages a collective recovery following a sharp multi-day selloff that was driven by concerns over AI computing power overcapacity. The prior downturn was triggered by reports that Meta was planning to sell idle AI computing resources to external customers, which the market interpreted as a signal of industry overcapacity.

Some institutions have since argued that Meta's case represents an isolated instance of model capability shortfalls paired with redundant capacity buildout, rather than a systemic industry issue, helping ease bearish sentiment at the margin and contributing to the sector's recovery.