Z.AI shares surged 5.55% during intraday trading on Thursday, driven by a combination of index inclusion news and bullish analyst coverage that reinforced investor confidence in the company's large model commercialization prospects.

The rally came as Z.AI was officially added to the MSCI China Index, a move that typically attracts passive fund inflows and serves as a near-term catalyst for share prices. Adding to the momentum, Daiwa Securities initiated coverage on the stock with a Buy rating and a target price of HK$1,500, citing optimism over the company's ability to monetize its large AI models.

The positive sentiment was further supported by a series of recent developments. Morgan Stanley had previously raised its target price to HK$1,700, while Z.AI's ZCode users surpassed 1 million and API users approached 7 million. Institutions broadly expect strong commercialization momentum, backed by improved computing power acquisition capabilities, new financing, and a structural industry shift from price competition toward monetization through model intelligence.