HSBC says Z.AI's ARR topped USD1 billion in July, but competition and valuation pressure are rising
HSBC said Z.AI’s annual recurring revenue passed USD1 billion in July and that it raised its ARR forecasts to USD2 billion for 2026 and USD6.5 billion for 2027.
HSBC said Z.AI’s annual recurring revenue passed USD1 billion in July and that it raised its ARR forecasts to USD2 billion for 2026 and USD6.5 billion for 2027.
HSBC said it expects Z.AI to turn profitable in 2027.
HSBC also said competition in large-model computing intensified after Kimi K3 was launched. The note cited pressure from a Hong Kong share placement and exchange-rate moves, and said potential post-lockup selling remains a risk. HSBC pointed to GLM model iteration and any easing of compute bottlenecks as catalysts to watch.
HSBC said it expects Z.AI to turn profitable in 2027.
HSBC also said competition in large-model computing intensified after Kimi K3 was launched. The note cited pressure from a Hong Kong share placement and exchange-rate moves, and said potential post-lockup selling remains a risk. HSBC pointed to GLM model iteration and any easing of compute bottlenecks as catalysts to watch.