United Microelectronics (UMC) stock surged 6.22% during the overnight session, marking a significant positive move for the semiconductor company.
The rally was driven by a strong market reaction to the company's recently released first-quarter financial results, which significantly exceeded analyst expectations. UMC reported a net profit of NT$16.17 billion for Q1, representing a 108% year-over-year increase. The company's gross margin reached 29.2%, supported by capacity utilization climbing to 79%.
Notably, management indicated that average selling prices rose 8% year-over-year in the first quarter and guided for an additional 5-7% price increase in the second quarter. This clear pricing power in mature process nodes and strong operational performance fueled investor optimism, leading to the stock's outperformance compared to broader sector trends.
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