HSBC Global Investment Research maintains a Hold rating on SENSETIME due to its pioneering role in the Chinese AI industry, but highlights increasing competition from new entrants in the generative AI space. The report notes that SENSETIME's foundation models face strong competition from companies like ByteDance and Alibaba. If SENSETIME's products lag behind, it may become more dependent on bundled sales of computing power, leading to a potential de-rating of the stock. The revenue growth forecast for SENSETIME is significantly lower than that of its competitors, prompting a reduction in the target price.
