Morgan Stanley has raised its price target for Z.AI by nearly 72% to HK$1,700, driven by the company's improving access to computing power and new funding that supports more robust growth.

Analysts led by Gary Yu noted in a report that China's large model industry is building a healthier commercialization environment, contrasting with the widespread view that open-weight models in China would lead to product commoditization and price wars. The industry is shifting from price competition toward monetization through model intelligence in a more positive manner.

The bank maintains a constructive outlook on MiniMax, citing the upcoming M3 upgrade and M3 Pro as key catalysts. However, it believes that MiniMax's growth will materialize more in the later stages, leading to a downward revision of its price target to HK$900.

Morgan Stanley is also bullish on Alibaba, highlighting its comprehensive AI capabilities across the entire industrial chain, advantages in computing power, and years of cloud growth alongside full profit expansion.