Kuaishou-W shares surged 5.09% during intraday trading on Wednesday, driven by a major brokerage upgrade and positive developments around its artificial intelligence unit.

The rally followed JP Morgan's upgrade of Kuaishou from Neutral to Overweight, with the bank significantly raising its target price from HK$48 to HK$71. Analysts cited Kling AI's growth outpacing expectations, leading to revenue forecast increases of 34% and 64% respectively. JP Morgan also highlighted Kuaishou's strong financial position with US$13 billion in net cash representing 52% of market capitalization.

Adding to the positive sentiment, Bloomberg reported that Kuaishou's AI unit Kling is in discussions with U.S. investment firm General Atlantic to lead a funding round exceeding $2 billion at an $18 billion valuation. This comes as Kling AI celebrates its second anniversary with global users surpassing 100 million and Q1 revenue exceeding RMB 650 million, representing over 300% year-over-year growth.