China’s Zhipu Gets Lone ‘Short’ Call After 1,100% Rally

Despite Zhipu's impressive 1,100% rally this year, making it the standout performer on the HSTECH Index, Felix Wang from Hedgeye Risk Management takes a contrarian view, arguing that the fair value for the stock is significantly lower at HK$407. He highlights the lack of pricing power for Zhipu, especially after the launch of DeepSeek’s V4 model, which has ignited a competitive price war among Chinese AI companies. This analysis suggests potential risks for investors who have been riding the stock's surge, emphasizing the need for a cautious approach.