Kuaishou Technology (01024.HK) saw its shares surge by 9.36% during Friday's intraday trading session, reaching a 10-week high. The significant uptick comes on the heels of the company's announcement of robust revenue projections for its AI-powered video generation tool, Kling AI.

Kuaishou revealed that Kling AI, launched just ten months ago, is on track to deliver $100 million in sales by February. The company stated that the AI service brought in more than 100 million yuan ($14 million) per month in April and May alone. This strong performance has caught the attention of investors and analysts alike, driving the stock's impressive rally.

The success of Kling AI underscores Kuaishou's growing prowess in the AI space. JPMorgan analysts, maintaining an "Overweight" rating on the stock, have reiterated Kuaishou as a top pick in China's digital entertainment sector. They anticipate further share price appreciation in the next six months, driven by accelerating ad revenues and the continued ramp-up of Kling AI monetization. The investment bank expressed optimism about Kling AI's monetization outlook, citing strong demand from key verticals such as advertising and professional content generation.

Kuaishou's AI push comes amid intensifying competition in the Chinese tech sector, with rivals like Alibaba, Tencent, and ByteDance also aggressively expanding their AI capabilities. As the video-generation field becomes increasingly crowded, Kuaishou's early success with Kling AI positions the company favorably in the race to monetize AI technologies. The robust performance of Kling AI not only demonstrates Kuaishou's innovative capacity but also signals the growing importance of AI in driving growth for tech companies in an evolving digital landscape.