Analysts sharply raised the target price of Zhipu shares: a 72% increase and a paradigm shift in Chinese AI
The market received a powerful signal: the target price for shares of Chinese AI startup Zhipu was raised by nearly 72%, triggering a five-day rally and a rise in quotes of more than 37%. This is not just an adjustment of numbers, but an indicator of a deep shift in the valuation of the entire artificial intelligence industry in China.
In my analytical review, I note the revision of the target price for Zhipu on the Hong Kong Stock Exchange from 990 to 1,700 Hong Kong dollars (HKD). Key drivers are expanded access to computing resources for training and launching models, as well as the successful completion of a new funding round. However, more important is the change in the fundamental logic of the market.
From price war to monetization of intelligence
Just a few months ago, the dominant narrative was competition among numerous open models, which was expected to lead to their consolidation and a collapse in prices. Now this logic is outdated. China's large AI model industry is forming a healthier commercial model, shifting from price competition to monetization through model quality. Revenue will be generated not by the cheapest, but by the "smartest" model.
Zhipu, founded in 2019 and known for its GLM series of large language models, has already raised $4 billion in a follow-on share placement in Hong Kong this year. This confirms high investor interest amid the narrowing gap between Chinese and Western AI developments.
A cautious view on MiniMax
Unlike Zhipu, analysts retained a "constructive" outlook for MiniMax but lowered the target price to 900 HKD, expecting the company's greatest growth at later stages. At the same time, MiniMax shares rose 4.8% during the day. Alibaba also received a positive assessment thanks to its capabilities in end-to-end AI, its advantage in computing power, and the growth of its cloud business margin. The Hang Seng Index opened up 0.53%, while the Hang Seng Tech rose 0.85%.
My conclusion: if the monetization forecast proves correct, companies capable of turning AI models into stable income will sharply increase in value. The five-day rise in Zhipu shares shows that the market is already betting on this. This is a signal for revising investment strategies in China's technology sector—and, possibly, for the entire global AI market.