Shares of Z.AI surged 5.06% during Monday's intraday trading session, following a bullish research note from Morgan Stanley that significantly raised the company's price target.

The investment bank lifted its price target for Z.AI by nearly 72% to HK$1,700, citing the company's improving access to computing power and new funding that supports more robust growth. Analysts led by Gary Yu also highlighted that China's large model industry is building a healthier commercialization environment, shifting away from price competition toward monetization through model intelligence.

The upgrade reflects growing confidence in Z.AI's ability to scale its AI capabilities amid a more favorable industry landscape, with the firm's enhanced computing resources and fresh capital seen as key drivers for its next phase of expansion.