MEITU's stock price soared 5.58% during Tuesday's intraday session, marking a significant upward movement for the company.
The rally was fueled by a convergence of positive catalysts. On the capital flow front, JPMorgan recently increased its stake in the company, while its inclusion in the MSCI Global Small Cap Index is expected to attract passive fund inflows. Fundamentally, the company disclosed strong growth in its AI productivity application annual recurring revenue, which surged approximately 56.2% year-over-year. Analyst sentiment remains bullish, with Goldman Sachs maintaining a Buy rating and highlighting that AI model integration will enhance the productivity tools' average revenue per user.
Further supporting the positive outlook are the company's plans to train proprietary vertical AI models to reduce reliance on costly third-party APIs, which should improve margins over the medium term. These factors, combined with ongoing share buyback programs, provided a solid foundation for the stock's continued rebound momentum.