Hua Hong Semiconductor (SEHK:1347): Rethinking Valuation After US Approval of Nvidia’s H200 Exports to China
The latest U.S. move to let Nvidia ship H200 AI chips into China has put Hua Hong Semiconductor (SEHK:1347) under pressure, as investors reassess domestic chipmakers in a suddenly more competitive landscape.
See our latest analysis for Hua Hong Semiconductor.
That backdrop helps explain why the stock wobbled on the Nvidia headlines, even though Hua Hong’s 90 day share price return of 51.49 percent and 1 year total shareholder return of 266.51 percent still signal powerful, but increasingly scrutinised, momentum.
If this move has you rethinking your chip exposure, it could be worth scanning other high growth tech and AI stocks that might balance growth potential with a different risk profile.
With Hua Hong now trading slightly above analyst targets and a rich multi year run already behind it, the real question is whether recent weakness marks a fresh entry point or if the market has fully priced in future growth.
Most Popular Narrative: 3% Overvalued
Compared with Hua Hong Semiconductor’s last close of HK$76.05, the most popular narrative points to a fair value of about HK$73.83, framing a modestly optimistic market.
The analysts have a consensus price target of HK$43.333 for Hua Hong Semiconductor based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of HK$68.25, and the most bearish reporting a price target of just HK$22.38.
Want to see how aggressive growth forecasts, rising profit margins, and a punchy future earnings multiple all fit together, and why they still suggest upside from here?
Result: Fair Value of $73.83 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, execution missteps on aggressive capacity expansion, or a sharper than expected slowdown in China focused demand, could quickly undermine the bullish AI driven thesis.
Find out about the key risks to this Hua Hong Semiconductor narrative.
Build Your Own Hua Hong Semiconductor Narrative
If this view does not quite fit your own, or you prefer to dig into the numbers yourself, you can build a personalised narrative in just a few minutes: Do it your way
A great starting point for your Hua Hong Semiconductor research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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