← Latest news 
China chip rally lifts valuations past 120 times earnings igniting bubble fears after earnings miss
Economy
Published on 15 May 2026
One Chinese chip stock trades over 150x forward earnings
Chinese chip stocks are soaring on Beijing’s push for technological self-reliance, but investors are increasingly worried the rally is outrunning fundamentals. Bloomberg data shows mainland bellwethers trading at extreme forward earnings multiples, including SMIC above 120x and Hua Hong above 150x, compared with Intel around 95x. Concerns intensified after Hua Hong’s earnings and guidance missed estimates and SMIC posted weaker net income. Meanwhile, heavy turnover and rising margin debt suggest crowded, speculative positioning.
- SMIC trades at more than 120 times forward earnings
- Hua Hong Semiconductor is valued above 150 times earnings
- Hua Hong shares fell over 6% after earnings and guidance misses
- STAR50 index hit a record as AI fueled Asian tech momentum
- Trading turnover above 3 trillion yuan and rising margins signal crowding
- Securities Times warned against chasing stocks above 1000 yuan
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times