On September 10, Z.AI fell 3.83% in regular trading to HK$870.0/share, with turnover of HK$238 million, extending a multi-session decline since the release of its interim results on August 31.

On the news front, Jefferies significantly cut the valuation multiple for Z.AI's cloud business from 50x to 30x, lowering the target price from HK$1,299.8 to HK$1,183.79 while maintaining a Hold rating. The brokerage flagged that the China large language model sector is overly crowded, expressing a preference for full-stack cloud platform giants over standalone AI labs. This logic shift has triggered a broader valuation reassessment for Z.AI and peers. Jefferies also questioned the sustainability of Z.AI's year-end US$2.4 billion ARR guidance, citing elevated base effects, uneven compute supply growth, and high customer concentration with low switching costs. Despite raising revenue forecasts by 37%–119% for the coming years, the firm warned that new GPU cluster deployments could weigh on second-half gross margins. Z.AI's stock has now fallen over 70% from its June peak of HK$2,980.

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