Z.AI (02513) shares plummeted 5.03% during Tuesday's intraday trading session, giving back a significant portion of the gains accumulated in the prior session.
The decline reflects broad-based profit-taking after the stock surged over 5% in the previous session, fueled by a highly bullish research note from Morgan Stanley. The investment bank raised its target price for Z.AI by approximately 72% to HK$1,700, citing improved computing power acquisition capabilities, new financing support, and a favorable shift in the Chinese large language model industry from price competition toward monetization through model intelligence. The sharp rally prompted investors to lock in profits, leading to today's pullback.
Adding to the selling pressure, the broader systems software sector showed weakness during the session, with peers such as HAIZHI TECH GP and DEEPEXI TECH also trading lower, further dampening sentiment around Z.AI.