Zhipu AI shares surge 33% as Wall Street bets on China AI after Anthropic restrictions

Zhipu surges 33% as Wall Street raises bets on China AI after Anthropic curbs

Shares of Chinese AI model developer Zhipu surged on Monday as Wall Street banks raised bets on the company's ability to capture global AI demand, while Washington tightens curbs on foreign access to its most powerful models. Knowledge Atlas Technology, the Hong Kong-listed entity behind Zhipu, soared as much as 48% on Monday before paring gains. It was last traded 33% higher at around 1,461 Hong Kong dollars ($186), according to LSEG data. The share moves came as JPMorgan reportedly maintained its overweight rating on the company and raised the target price to HK$1,400 from HK$950, citing the firm's model visibility and what the bank sees as pricing power in a fiercely contested market. It simultaneously downgraded its domestic rival MiniMax, per a Bloomberg report. MiniMax shares rose 7.4% on Monday. Separately, Bank of America analysts on Monday initiated coverage with "buy" ratings on the pair, setting targets of 1,250 Hong Kong dollars for Zhipu and 500 Hong Kong dollars for MiniMax. The assessment came after the Trump administration on Friday ordered Anthropic to suspend access to its most advanced AI models, Fable 5 and Mythos 5, for any foreign national, including Anthropic's own non-citizen employees, over national security concerns. Over the weekend, Zhipu announced GLM-5.2, its latest and most capable open-source large model, would be released as open-source software this week with no usage restrictions. While U.S. developers face mounting pressure to restrict frontier access, Chinese players have leaned into open distribution, drawing demand particularly from cost-sensitive enterprise users. China is positioned to capture a substantial share of the global AI market within the "value-for-money" segment, with Chinese models gaining traction as "cheap-and-capable performers" as U.S. pricing for frontier models rises, according to BofA analysts. Zhipu raised cloud API prices by 8% to 17% alongside its GLM-5.1 launch in April, its second hike this year, responding to surging demand for AI services as well as pressure from investors to begin delivering on profits. The Anthropic curbs have also revived debates around AI talent race between the U.S. and China. Peter Alexander, Z-Ben Advisors managing director, estimated that around 40% of U.S.-based AI engineers were born in China, and that the latest directive effectively bars many of those individuals from accessing the systems they helped build. "The very individuals who were responsible, perhaps not in whole but crucial, for creating the most powerful AI models in the world are now persona non grata," Alexander said in a note Monday, warning of potential brain drain toward Zhipu, and to Chinese AI companies DeepSeek and Moonshot AI. Zhipu's shares have surged more than tenfold since its initial public offering in January, buoyed by increasing optimism over China's position in AI. MiniMax, which also went public at the start of the year, has not matched that trajectory, as investors have assigned it a steeper discount. Zhipu's market capitalization stood at HK$489 billion as of Monday, nearly four times larger than MiniMax's HK$124.2 billion. Zhipu and MiniMax are both planning a listing on China's Nasdaq-like STAR Market in Shanghai. "Zhipu's premium reflects faster ARR [annual recurring revenue] growth, stronger talent density [and] public backing, and its lead in enterprise revenue exposure," BofA analysts said. The Wall Street bank considers MiniMax a potential catch-up trade, as its estimated price-to-sales multiple compared favorably to Zhipu's as the gap is currently too wide given MiniMax's product breadth.

Zhipu AI shares surge after JPMorgan sharply hikes price target By Investing.com

Investing.com-- Zhipu AI shares rose sharply on Monday after JPMorgan sharply hiked the stock's target price and lauded the firm as a major winner in China's artificial intelligence industry. JPM also downgraded Zhipu rival MiniMax Group Inc (HK:0100)'s rating. Zhipu- which trades as Knowledge Atlas Tech (HK:2513)- jumped as much as 48% to HK$1,620.0. The stock trimmed some gains to trade up 28% by 23:59 ET (03:59 GMT). Get more insights on China's top AI stocks by subscribing to InvestingPro Rival Minimax fell 2.2%. JPM hiked Zhipu's price target to HK$1,400 from HK$950, touting the firm's popular AI models and strong pricing power in comparison to its peers. JPM maintained its Overweight rating on the stock. JPM also lauded Zhipu's strong commercial priceline and saw the company well ahead of peers in a highly competitive cloud infrastructure market. Zhipu on Monday also unveiled plans to make its GLM-5.2 AI model available on an open-source basis later this week. The launch highlights a growing trend among Chinese AI providers to capture a greater share of users displaced by higher-priced Western AI offerings. The company is viewed as being among the most likely beneficiaries of the U.S. government blocking AI major Anthropic from releasing its advanced models to non-U.S. users. The Donald Trump administration over the weekend blocked Anthropic from allowing any foreign nationals from using its Fable 5 and Mythos 5 models, citing security concerns. More such moves may underscore an increasing trend of sovereign AI models, further pushing users towards more open alternatives such as Zhipu. Zhipu's shares have surged nearly 1000% since their debut at the beginning of the year, with the company viewed among China's AI leaders.