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<Research>JPM: KUAISHOU-W (01024.HK) Is 1 of World's Most Undervalued AI Stocks; Rating Overweight
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57
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OpenAI recently launched its AI video and audio generation model, Sora 2, which shows improved capabilities and controllability in adhering to physical laws compared to previous versions.

OpenAI also launched a new social iOS app, Sora, powered by Sora 2. The app is currently in an invite-only trial in Northern America, allowing users to share their creative content.

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KUAISHOU-W (01024.HK) shot up 8% yesterday (2nd), outperforming the HSI, according to JPMorgan's research report. This is believed to be due to KUAISHOU-W's ownership of a mainstream short video platform in China and the globally leading AI video generation model, Kling. The company is poised to launch an AI-powered social video platform akin to Sora in the future.

JPMorgan reaffirmed KUAISHOU-W as its top pick in China's digital entertainment sector, and believed that its core advertising business development is accelerating and the value of AI-driven advertising development is not yet fully realized.

The broker continued to view it as one of the world's most undervalued AI stocks, with rating kept at Overweight and a target price of $89, corresponding to a projected 2026 PE ratio of about 14x.

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