MINIMAX-W shares tumbled 5.02% during intraday trading on Friday, extending losses as multiple headwinds weigh on the AI company, including a significant target price cut by JPMorgan and mounting competitive pressure in China's large language model space.

The sell-off comes after JPMorgan slashed its target price on MiniMax from HK$240 to HK$160 while maintaining a neutral rating. The downgrade was triggered by intensified industry competition following the launch of Moonshot's Kimi K3 large language model. The investment bank also lowered its projected 2030 price-to-earnings ratio for the company from 30x to 20x, signaling broader valuation de-rating expectations across the sector.

Additional pressure stems from dilution concerns linked to approximately HK$16 billion in new financing through share placement and zero-coupon convertible bonds, as well as ongoing selling from the first batch of lock-up shares released on July 9. Meanwhile, broader sentiment toward Chinese AI firms faces headwinds after the White House indicated that AI technology theft would likely be discussed in upcoming Trump-Xi talks, raising the specter of renewed US-China tech tensions.