Chinese artificial intelligence model developers rallied sharply on Wednesday after Nvidia Chief Executive Officer Jensen Huang joined US President Donald Trump on his visit to Beijing, fuelling hopes that China could gain wider access to the chipmaker’s advanced semiconductors.
Shares of MiniMax Group Inc. closed about 18% higher, while Knowledge Atlas Technology Joint Stock Co. climbed roughly 37% by day’s close, extending a rally that has made Chinese AI firms among the hottest trades in Hong Kong markets this year.
Huang’s appearance as part of Trump’s business delegation has thrust artificial intelligence and semiconductor policy into the spotlight ahead of a closely watched summit in Beijing.
Investors are betting the trip may help ease long-standing obstacles preventing Nvidia from supplying its powerful H200 AI chips to Chinese customers.
Nvidia chip hopes drive AI rally
MiniMax and Knowledge Atlas, which operates the Zhipu AI platform, have emerged as leading beneficiaries of enthusiasm surrounding China’s fast-growing generative AI industry.
Investors have increasingly viewed the companies as key contenders in the race to build China’s domestic AI ecosystem, particularly as firms seek cheaper alternatives to Western AI providers.
However, analysts say access to advanced semiconductors remains critical for China’s ambitions to expand its token-based AI economy and compete globally in large language models.
“Zhipu and Minimax seem to be excited on news that Jensen Huang is joining Trump on his trip to China, something that can raise odds of onshore LLMs getting access to better Nvidia chips,” Jian Shi Cortesi, a fund manager at GAM Investment Management in Zurich, said in a Bloomberg report.
“In general, these days people are mainly interested in anything related to AI,” Cortesi added.
The optimism reflects expectations that Nvidia could finally secure approval to sell H200 chips in China after years of export restrictions and regulatory uncertainty.
Trump’s administration had reportedly approved H200 licenses several months ago in a major reversal of US policy, marking a significant victory for Huang and Nvidia.
Yet Chinese authorities have remained cautious, balancing criticism of US export controls with a broader push to develop self-sufficiency in semiconductors and support domestic technology champions such as Huawei Technologies Co.
Last year, China rejected imports of Nvidia’s less advanced H20 AI chips, underscoring the complexities surrounding technology trade between Washington and Beijing.
“The optics are there for potential negotiations on Nvidia supplying China again,” said Marvin Chen, an analyst at Bloomberg Intelligence.
“We think this benefits China’s token economy and names such as MiniMax, as more powerful Nvidia chips may require more compute.”
Analysts turn bullish on Chinese AI firms
Brokerages and investment banks have become increasingly optimistic about the commercial prospects of Chinese AI model developers.
China Merchants Securities International recently initiated buy ratings on both MiniMax and Knowledge Atlas, saying the companies are accelerating the commercialization of their AI offerings.
The brokerage assigned target prices of HK$1,282 for Knowledge Atlas and HK$982 for MiniMax.
Both companies have surged since listing in Hong Kong earlier this year and are expected to join the Hang Seng Tech Index on June 8.
Analysts at Morgan Stanley estimate the inclusion could drive between $1.25 billion and $1.75 billion in passive inflows.
Morgan Stanley also sharply raised its price targets on the companies last month, increasing its target for Knowledge Atlas to HK$990 from HK$560 and for MiniMax to HK$1,100 from HK$990.
The bank’s analysts said Zhipu’s AI models are particularly recognized for coding capabilities, while MiniMax has gained attention for offering a broader suite of AI tools spanning text, audio, and content generation.
MiniMax has also become a favored model among users of OpenClaw because Chinese AI systems have generally been cheaper to deploy than many US rivals.
China AI market matures
The pricing gap between Chinese and US AI services, however, is narrowing as adoption accelerates.
Morgan Stanley analysts noted that the cost of accessing Chinese AI models rose during the first quarter to at least 17% of what US AI models charge, up sharply from just 5% a year earlier.
The analysts forecast that each of China’s frontier AI model developers could generate at least $1 billion in revenue this year, with revenue potentially more than doubling next year.
Knowledge Atlas and MiniMax are the first major Chinese AI model companies to list publicly, while rivals such as Moonshot AI, which operates the Kimi AI model, and StepFun remain privately held.
“We believe AI and large language model names will become a much bigger driver of Hong Kong equity markets, reshaping index composition, performance, liquidity, and fund flows,” Morgan Stanley analysts said.
“Strong regulatory support is evident, with tech accounting for 40% of HK IPO fundraising year-to-date and 43% of the pipeline, reinforcing AI as a durable force in Hong Kong’s equity market,” they added.
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