Morgan Stanley Raises Chinese AI Startup Zhipu’s Target Price 72%: Stock Surges 37%
Morgan Stanley raised its worth goal on Chinese AI startup Zhipu by practically 72% on Thursday, sending the top off and capping a five-day run the place the corporate gained over 37%. The financial institution says China’s AI trade is leaving the value warfare period behind.
Analyst Gary Yu and colleagues raised Zhipu’s Hong Kong goal from HK$990 to HK$1,700, citing two enhancements: higher entry to computing energy, the {hardware} infrastructure required to coach and run AI fashions, and the completion of a brand new financing spherical.
From Price Wars to Intelligence-Driven Profits
For months, the dominant concern hanging over China’s AI sector was that an abundance of competing open-weight fashions would drive homogenization and a race to the underside on pricing. Morgan Stanley says that logic is breaking down.
“China’s large-model trade is establishing a more healthy commercialization setting,” Yu wrote, arguing the sector is shifting “from worth competitors to monetization pushed by mannequin intelligence.” The smarter mannequin wins income, not the most cost effective one. That shift, if it holds, adjustments how buyers ought to worth the entire sector.
Founded in 2019, Zhipu is greatest recognized for its GLM collection of enormous language fashions and raised $4 billion in a Hong Kong share offering earlier this yr.
BeInCrypto has tracked China’s AI fashions closing the gap on Western rivals all through 2026. Morgan Stanley had beforehand flagged the potential for a broad AI-driven re-rating of Hong Kong tech shares.
MiniMax Gets a More Cautious Read
The identical report coated two different names. On MiniMax, the financial institution stayed “constructive” however lowered its goal to HK$900. It says the corporate’s strongest progress will are available later levels reasonably than close to time period.
MiniMax nonetheless rose 4.8% on the day. Alibaba drew a bullish point out, with analysts pointing to its end-to-end AI capabilities, computing energy benefits, and increasing cloud margins.
The broader Hang Seng Index opened 0.53% larger, with the Hang Seng Tech Index up 0.85%.
If Morgan Stanley’s monetization thesis holds, the businesses that may translate mannequin intelligence into recurring income will reprice sharply. Zhipu’s five-day climb suggests the market is already betting on it.
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