Key facts
- SMIC's second-quarter profit more than tripled year-on-year to $479.2 million.
- SMIC's second-quarter revenue rose 36% to over $3 billion.
- CoreWeave, Super Micro Computer, and Nebius reported significant stock gains.
- Birkenstock expects fiscal year 2025 revenue growth between 15% and 17% on a constant currency basis.
- ASX reported a more than 5% rise in annual underlying profit.
- ASX shares reached their highest level in over three months.
- Londian Wason New Energy Tech debuted on the NYSE valued at $2.01 billion.
- Londian Wason raised $94.3 million in its IPO.
- Tapestry expects to buy back $1.35 billion of stock in the fiscal year.
- Cisco Systems projected fiscal 2027 revenue above Wall Street expectations.
SMIC, China's largest contract chipmaker, reported a significant increase in its second-quarter financial performance, with profit more than tripling year-on-year to $479.2 million, surpassing analyst expectations. The company's revenue also saw a substantial rise of 36%, reaching over $3 billion, which exceeded forecasts. This strong performance is attributed to a robust demand for AI-related chips.
Across other sectors, demand for AI compute and hardware continues to drive strong earnings. Companies like CoreWeave, Super Micro Computer, and Nebius have reported significant stock gains following their earnings announcements, which also surpassed expectations. German footwear manufacturer Birkenstock has revised its annual revenue forecast upwards, attributing this to sustained demand for its premium sandals and fashionable styles among affluent consumers. The company now anticipates fiscal year 2025 revenue growth to be at the higher end of its previously projected range, between 15% and 17% on a constant currency basis.
In the financial markets, Australia's bourse operator, ASX, announced a more than 5% increase in its annual underlying profit. This growth was propelled by heightened market volatility, which in turn boosted trading activity. Following this announcement, ASX shares climbed to their highest level in over three months. Additionally, Tapestry, the parent company of Coach, reported quarterly profits that exceeded estimates and provided an optimistic forecast for annual earnings. This positive outlook is supported by resilient demand for Coach handbags, particularly from affluent and younger shoppers. Tapestry also plans to buy back $1.35 billion of its stock during the fiscal year.
Further demonstrating global market activity, Chinese copper foil maker Londian Wason New Energy Tech made its debut on the New York Stock Exchange. The company was valued at $2.01 billion and successfully raised $94.3 million in its upsized offering. This IPO marks the largest by a Chinese company in the U.S. in over a year. Cisco Systems is also projecting fiscal year 2027 revenue to exceed Wall Street's expectations, indicating confidence in sustained growth driven by strong demand for its AI networking equipment.