Shares of Chinese AI developer Zhipu surged on Monday as major Wall Street banks raised their bullish forecasts on the company’s potential to meet global AI demand, despite increased U.S. restrictions on access to advanced foreign AI models.
Knowledge Atlas Technology, the Hong Kong-listed company behind Zhipu, rose as much as 48% before trimming gains, closing approximately 33% higher at around HK$1,461 ($186).
The rally was supported by a bank’s decision to maintain an overweight rating and significantly raise its price target, citing Zhipu’s strong visibility into its models and its pricing power in a highly competitive market. Meanwhile, its domestic rival MiniMax gained about 7.4%.
Another major bank also initiated coverage with buy ratings on both companies, setting targets of HK$1,250 for Zhipu and HK$500 for MiniMax.
This surge occurs amid recent U.S. measures, including directives to restrict access to advanced AI models by foreign nationals over national security concerns.
Additionally, Zhipu announced the upcoming open-source release of its latest large model, GLM-5.2, with no usage restrictions.
Source (CNBC)
