Story
MiniMax Shares Surge 6.7% on Rival's Upbeat Outlook and Strong Growth Metrics
Summary
The AI company's stock rallied in Hong Kong, bucking a market downturn, after competitor ZAI raised its revenue forecast and on the back of MiniMax's own rapid commercial adoption and new product milestones.
Shares of MiniMax surged 6.7% to HK$254 in Hong Kong trading on Thursday, significantly outperforming the broader market as positive sentiment lifted key players in the artificial intelligence sector.
Sector-Wide Optimism
The primary catalyst for the rally appeared to be positive news from rival ZAI, whose stock jumped over 4%. According to a report from the South China Morning Post, ZAI raised its year-end annual recurring revenue (ARR) outlook by 25% to $3 billion.
The report attributed ZAI's upgraded forecast to a recent capital raise that has allowed the company to overcome previous computing capacity bottlenecks. MiniMax's stock moved in sympathy, suggesting investors see the positive development as indicative of broader strength and demand within the industry. Both companies' gains came even as Hong Kong's Hang Seng index fell 0.9%.
MiniMax's Strong Fundamentals
MiniMax's rally is also supported by its own robust growth metrics. In late August, the company disclosed that its own annualized recurring revenue had surpassed $800 million. This figure underscored the rapid commercial adoption of its multimodal AI model suite.
AdCritically, MiniMax noted that enterprise and developer clients now constitute more than 80% of its revenue base. This shift highlights a successful transition to commercial applications and a strong B2B customer pipeline.
Product and Technology Milestones
On the technology front, MiniMax recently announced the integration of its H3 Max 768P and 480P video generation models into its open platform. The company reported a significant technical breakthrough, achieving generation speeds capable of producing a five-second, 768P audio-video clip in under three seconds.
This processing speed is fast enough to enable real-time live streaming applications, a feature that the company stated is already being deployed by overseas developers in production environments, signaling a clear path to further monetization.
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