Published on 08/28/2025 at 04:00 am EDT
(MT Newswires) -- Chinese stocks rebounded on Thursday, led by the semiconductor sector, following the government's plan to triple its artificial intelligence chip output.
The Shanghai Composite Index, the main gauge of Chinese stocks, grew 1.1% or by 43.25 points to 3,843.60. The Shenzhen Component Index 2.3% or by 276.30 points to 12,571.37.
Shanghai's semiconductor index closed 7% higher following reports Chinese chip manufacturers are looking to triple the country's production of artificial intelligence processors by 2026.
A Huawei AI chip facility is slated to start production as soon as the end of the year, the Financial Times reported, citing two people with knowledge of the plans.
China's push is seen to reduce the country's dependence on top Nvidia chips, which the US has cut off access to, the FT said.
Meanwhile, Nvidia Chief Executive Jensen Huang allayed investor concerns about the end of a spending boom for AI chips, saying there will be opportunities for the market to boom to a multi-trillion-dollar industry in the next five years, Reuters reported separately.
"A new industrial revolution has started. The AI race is on," Huang said. "We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade," Huang reportedly said during an earnings call.
In corporate news, China National Software & Service's (SHA:600536) shares closed 3% higher after its loss narrowed 73% year over year to 74.5 million yuan.

Sumber : MT Newswires