Hua Hong Semiconductor (HK:1347) shares surged after reporting record fourth-quarter revenue of $659.9 million, a 22.4% year-on-year increase, and returning to profit with $17.5 million net earnings. Shanghai-listed shares jumped nearly 6% to 137.13 yuan as wafer shipments rose 19.4%, boosting gross margin to 13.0%. The performance reflects strong demand for AI and power management chips, driving a broader tech rally in China. Chinese AI startups and tech giants, including Zhipu AI's GLM-5 launch and Alibaba's Qwen chatbot blitz, are fueling investor enthusiasm ahead of the Lunar New Year.

This momentum extends to memory chip demand, with leading PC makers exploring Chinese-made chips amid global supply constraints. While Semiconductor Manufacturing International Corp (SMIC) also reported strong Q4 profits up over 60%, its shares dipped on cautious 2026 guidance.