Shares of Z.AI (02513) climbed more than 12% during the afternoon session, last trading up 9.41% at HK$744 with turnover reaching HK$10.564 billion. The sharp move comes as investors react to the company's accelerating revenue momentum and bullish commentary from analysts on its long-term growth trajectory.

As of the end of August, Z.AI's annualized recurring revenue (ARR) calculated on a monthly basis reached US$1.6 billion, a 60% jump from the US$1 billion recorded in early July. On a weekly measurement, ARR has already exceeded US$2 billion, with management setting a target of US$2.4 billion by the end of 2026.

Guosheng Securities expressed sustained optimism regarding the iterative capabilities of Z.AI's GLM model series, alongside the continued expansion of its ARR. The brokerage highlights that the company's technology roadmap and revenue engine are advancing in tandem, positioning it well within the competitive AI landscape.

Adding to the positive sentiment, Wu Hequan, an academician at the Chinese Academy of Engineering, noted at the China Computing Power Conference that the proliferation of intelligent agents is directly fueling a surge in Token consumption, which scales proportionally with computing power demand. According to forecasts from the China Telecom Research Institute, annual Token consumption in China is projected to reach 1 quintillion in 2026, surpassing 350 quintillion by 2030, representing a compound annual growth rate of nearly 12 times.

The broader implication is that rising Token usage underscores the critical need for robust AI infrastructure, a trend that could benefit players like Z.AI as they scale their model offerings and monetization.