DeepSeek's recent release of its R1 model has garnered significant attention in the AI community. The model's superior performance and cost-effectiveness have led to its applications topping free app download charts in both China and the U.S., surpassing competitors like ChatGPT.
This enthusiasm was further propelled by Alibaba's release of its own AI model, which it claimed surpassed other leading players. Chip stocks were significantly higher after the Chinese AI models achieved similar or better performance using less advanced chips.
Tech stocks surge despite Trump tariffs
Semiconductor Manufacturing International Corp (HK:0981) (SMIC) shares surged 8.1% to HK$45.30 on Monday, while Meitu stock jumped 6%.
Alibaba Group (HK:9988) stock advanced 3.5%, while Tencent (HK:0700) shares rose 3.1%.
Kingsoft Cloud (HK:3896) shares jumped 7.7%, while GDS Holdings (HK:9698) stock surged 21.2%.
The broader Hang Seng index climbed over 3%. These gains come despite President Donald Trump's recent announcement of a 10% tariff on Chinese imports, effective February 4.
Analysts suggest that the market's focus on domestic technological advancements and the potential for AI applications to drive future growth have overshadowed immediate concerns over trade tensions.
Morgan Stanley (NYSE:MS) raises Xiaomi (OTC:XIACF)'s PT on strong EV, AI growth
Xiaomi Corp (HK:1810) stock jumped nearly 4% to HK$39.45 on Monday.
Morgan Stanley analysts have raised their price target on Xiaomi to HK$45 from HK$35, while reiterating an “Overweight” rating.
Analysts highlighted Xiaomi’s EV business as a key driver, and raised their 2025 shipment forecast.
Morgan Stanley also attributed the PT change to better prospects for the company's artificial intelligence of things (AIoT) division.
"For AIoT, we expect Xiaomi to boost revenue growth further in home appliances, tablets, and wearables by launching innovative new products," they wrote.