Analysts sharply raised the target price for Zhipu's stock: +72% to the forecast, +37% to the quotes.
The market received a powerful signal: the target price for shares of Chinese AI startup Zhipu has been revised upward by nearly 72%. This triggered a confident rise in quotes, extending a five-day rally — the stock gained more than 37%. In professional circles, this move is seen as a marker of a paradigm shift in China's artificial intelligence industry: from price wars to the monetization of intelligence.
I carefully reviewed the updated analytical model. The projected share price for Zhipu on the Hong Kong Stock Exchange has been raised from 990 to 1,700 Hong Kong dollars (HKD). The basis for such a decisive revision was two key factors: a significant expansion of access to computing power needed for training and deploying models, as well as the successful completion of another funding round.
From a Price Race to Profit on Intelligence
Just a few months ago, the dominant scenario for China's AI sector was fierce competition among numerous open models, which inevitably led to their homogenization and a collapse in prices. However, the current market logic has changed dramatically. China's large language model industry is forming a healthier commercial environment.
The sector is transitioning from competing on the lowest price to monetizing through model quality. Now, revenue is generated not by the cheapest model, but by the smartest one. If this trend takes hold, investors will have to completely rethink their approach to valuing the entire industry.
Zhipu and MiniMax: Different Trajectories
Zhipu, founded in 2019 and known for its GLM series of large language models, has already raised $4 billion this year through a secondary share offering in Hong Kong. This confirms strong capital interest in the project.
At the same time, the report mentions other players. For MiniMax, a "constructive" outlook has been maintained, but the target price has been lowered to 900 HKD. Analysts expect the greatest growth for this company at later stages, rather than in the near term. Meanwhile, MiniMax shares rose 4.8% in a day. Alibaba also received a positive assessment: experts highlighted its capabilities in end-to-end AI, its advantage in computing power, and the growing margins of its cloud business.
Against this backdrop, the Hang Seng Index opened up 0.53%, while the Hang Seng Tech rose 0.85%.
My expert conclusion: If the forecast for AI monetization proves correct, we will witness a sharp appreciation in the value of companies capable of turning models into stable revenue. Zhipu's five-day stock rally is not just a speculative reaction, but the market's first step toward a new reality where intelligence becomes the primary asset. Investors should closely monitor companies' ability to demonstrate real revenue from AI products, rather than just model development.