Shares of KNOWLEDGE ATLAS (ASX: 02513) have risen more than 7% in trading.

At the time of writing, the stock is up 7.26% to HK$1,759, with a trading turnover of HK$3.014 billion.

The movement follows a recent internal letter from the company's founder, Tang Jie, outlining the firm's perspective on the upcoming competition in Artificial General Intelligence (AGI).

In the letter, Tang Jie stated that the company will continue its described "counter-intuitive" path and initiate a "Touch High Plan." This strategy involves a continued primary focus on AGI research rather than on short-term commercial monetization.

Tang Jie identified four key areas of focus: long-horizon tasks, autonomous agent systems, complete self-training, and advanced safety and governance frameworks.

In a separate development, J.P. Morgan has raised its price target for KNOWLEDGE ATLAS from HK$2,000 to HK$2,400. This follows a recent adjustment just last Tuesday, when the bank increased its target from HK$1,800 to HK$2,000.

The bank indicated that the company's latest fundraising initiative is expected to support revenue growth.

Analysts, including Olivia Xu, noted in a report that the new capital from a $4 billion share placement will help alleviate bottlenecks in computing power supply and support ongoing model training investments.

J.P. Morgan added that the additional inference computing resources are anticipated to be converted into annual recurring revenue within a 12-month timeframe.