Morgan Stanley Boosts Zhipu Price Target by Nearly 72%

Morgan Stanley raised its price target for Chinese AI startup Zhipu by nearly 72%, citing improvements in computing power and financing. The bank's analyst Gary Yu wrote that China's large-model industry is shifting from a price war to a more intelligent, monetization-driven environment.

The new Hong Kong target for Zhipu is HK$1,700, up from the previous HK$990. This move sent the stock up 37% in just five days. Morgan Stanley believes that this shift will change how investors value the entire sector.

Zhipu has seen significant momentum since being flagged by Morgan Stanley earlier. The company is known for its GLM series of large language models and raised $4 billion in a Hong Kong share offering earlier this year.