JPMorgan believes that the market's negative reaction to the launch of DeepSeek V4, which is seen as a competitive threat to Zhipu AI and MiniMax, is excessive. They view the launch as beneficial for the industry, as it supports key factors like computing power supply and cost efficiency. The adoption of domestic chips is expected to enhance the companies' revenue potential. JPMorgan recommends buying on dips and maintains an Overweight rating for both companies, with target prices set at HKD950 for Zhipu AI and HKD1,100 for MiniMax.
