Chinese technology firms’ early earnings are giving hardware stocks renewed momentum, while internet platforms still struggle to show a full consumer‑demand recovery.

Shares of Semiconductor Manufacturing International Corp. climbed as much as 6.4% in Hong Kong on Friday after the chipmaker reported earnings that beat estimates and a stronger‑than‑expected gross margin outlook. The results underscore a growing investor focus on semiconductor and hardware performance amid a still‑uncertain macro environment.

Meanwhile, major internet firms such as Baidu and Tencent have yet to demonstrate a clear rebound in user engagement or spending, keeping their stock trajectories under pressure. Analysts say the contrast highlights the differing resilience of hardware versus online services in the current market cycle.

The earnings come amid a broader shift in investor sentiment toward hardware, as capital rotates from internet services to more tangible assets. SMIC’s improved profitability suggests that demand for chips may be stabilising, offering a potential catalyst for further gains in related hardware equities. This momentum may help lift the broader Chinese equity market as investors seek higher‑margin, technology‑driven opportunities and support long‑term growth for the economy.