Shares of PATEO (02889) rallied nearly 6% during early trading in Hong Kong, with the stock last up 4.79% at HK$81, on a turnover of HK$11.57 million. The surge comes after the company recently inked a strategic memorandum of understanding with Arm to jointly drive innovation in the physical AI sector. Under the agreement, both parties will explore novel solutions tailored for physical AI applications, including support for next-generation AI workloads in the automotive domain, aiming to enable intelligent capabilities driven by perception and interaction.

Adding to the bullish momentum, PATEO has also secured a formal project nomination from a leading domestic premium new energy vehicle original equipment manufacturer. This marks the first time the company has been selected as a supplier for the client's upcoming overseas model under its flagship brand. The scope of work involves developing and delivering a high-end intelligent cockpit domain controller and AI interaction system based on Qualcomm's 8397 next-generation high-performance cockpit chip platform. This nomination represents another tangible milestone in PATEO's global expansion strategy.