On Monday afternoon, Z.AI rose over 6.5%. Goldman Sachs upgraded its investment rating on Z.AI from Neutral to Buy, believing the company remains one of China's leading artificial intelligence model enterprises and that its valuation has become attractive.

In its research report, Goldman Sachs stated that, considering Z.AI has signed new commercial terms with hyperscale cloud service providers in China and globally that are expected to bring additional high-margin revenue, it raised its estimate for the company's year-end annualized recurring revenue from US$2.7 billion to US$3.2 billion.

Recently, Z.AI completed rectification regarding security issues with its ZCode product and open-sourced ZCode. Institutions expect the incident to have a relatively small impact on fundamentals.

Previously, management disclosed several key pieces of information during a conference call with analysts and investors. These included: computing power supply is no longer the main constraint on revenue growth in the short term; breakthroughs have been made in revenue-sharing cooperation with cloud service providers; Co-work commercialization progress is faster than expected, with Co-work industry order value exceeding RMB 1 billion within one month after the release of GLM-5.3; and Z.AI's year-end ARR guidance was raised from US$2.4 billion to US$3 billion.