ZTE (ASX: 00763) shares surged more than 5% during the trading session. At the time of writing, the stock was up 5.34% to HK$24.44, with a turnover of HK$211 million.

The rally follows recent announcements regarding the company's upcoming product launch. On July 8th, Ni Fei, President of ZTE's Terminal Business Unit, stated on social media that Nubia would unveil the "world's first AI agent smartphone," with its debut scheduled for the World Artificial Intelligence Conference opening on July 17th.

Reports indicate that the AI agent phone mentioned by Ni Fei is precisely the second-generation "Doubao Phone." Compared to the M153 technical preview version launched in December 2025, the new model will feature upgrades to components such as the screen and camera module.

Sources also noted that, influenced by factors like rising memory prices, the expected retail price for the Doubao Phone II is projected to exceed 4,000 yuan, which is higher than the first generation's price point of 3,499 yuan.

In a recent research report, Morgan Stanley highlighted that as investor focus shifts to the recovery phase, coupled with the re-emergence of AI catalysts, ZTE could be poised for a re-rating. The bank pointed out that the company's collaboration with ByteDance on integrating the "Doubao" AI assistant brings agent, multimodal, and system-level AI capabilities into smartphones, with early demand indicators such as the initial batch selling out showing strong market interest.

The report further anticipates that ZTE will deepen this cooperation, potentially paving the way for the broader commercialization of AI phones, which could serve as a significant catalyst for both market sentiment and valuation.