JPMorgan Chase calls for excessive correction of Zhipu and maintains its overweight rating, driving the stock price to rebound by nearly 37% in a single day BlockBeats News: On July 21st, amidst the recent significant fluctuations in the US stock AI chain, the market once regarded Kimi K3 as a new "DeepSeek moment": a low-cost, high-performance, and open weighted Chinese model, reigniting investors' concerns about US AI capital expenditure returns, model pricing power, and computing power demand. WSJ stated that Moonshot AI's new model has exacerbated the anxiety of chip investors. JPMorgan Chase stated in its latest report on China's artificial intelligence industry that Kimi K3 has indeed changed the valuation framework of cutting-edge model companies in China. The report states that after the release of K3, the market doubted the long-term leadership of companies such as Zhipu and MiniMax, and therefore lowered their valuation multiples from approximately 30 times the expected P/ARR for 2030 to 20 times. However, JPMorgan Chase believes that a correction of over 50% in the stock price of Zhipu has over reflected this pressure. The bank maintains its "increase in holdings" rating on Zhipu and lowers its target price from HKD 2400 to HKD 1600; MiniMax maintains a 'neutral' rating and has lowered its target price from HKD 240 to HKD 160. The core judgment of the report is that K3 has shortened the leading window of GLM-5.2, but has not excluded Zhipu from the forefront model camp in China. Morgan Stanley stated that GLM-5.2 is still among the top production models in China, and Zhipu will re validate its competitiveness through GLM-5.3 and 2T+flagship models in the coming months. If the new model can re-enter the forefront array in coding, reasoning, and intelligent agent tasks, Zhipu still has the ability to maintain commercial growth. More importantly, the commercialization of Chinese models is still in its early stages. JPMorgan estimates that Zhipu's latest indicative ARR is about $1 billion, DeepSeek is about $500 million, MiniMax and Kimi are about $300 million each, and China's leading independent model suppliers total about $2.1 billion; By comparison, Anthropic ARR has reached approximately $69 billion. This means that the revenue scale of Chinese model companies is still significantly small, and the future growth space has not been completely squeezed due to the emergence of Kimi K3. The Kimi K3 has also left another signal to the market: stronger domestic models are trying to prove their capabilities at higher prices. The report mentions that the pricing of K3 API is significantly higher than the previous generation K2.7 Code, reflecting its improved capabilities in high-value tasks such as coding. If customers are willing to pay for stronger reasoning, longer context, and programming capabilities, the business model of Chinese model companies will shift from low price competition to capability pricing. Therefore, the tone of this report is not pessimistic. Kimi K3 has brought about a valuation reassessment and amplified concerns about the "cheap China model" in the US stock AI chain; But in JPMorgan's view, this shock also proves that the Chinese model layer is approaching the global forefront. For Zhipu, the next round of model releases will be a key window for repricing.