Shares of Kuaishou Technology, the popular short video app and AI company, surged 9.7% in intraday trading on Tuesday, outperforming the broader market. The rally comes as investors grow increasingly bullish on Chinese tech stocks, particularly those involved in artificial intelligence (AI) following the recent emergence of models like DeepSeek-R1.

According to a Goldman Sachs report, the rise of competitive and cost-effective AI models developed in China has transformed the narrative around the country's technology sector. This shift has fueled investor optimism regarding AI-driven economic growth, boosting key indices like the Hang Seng Tech Index and MSCI China by 27% and 19%, respectively, over the past month.

As one of China's leading AI and technology companies, Kuaishou is well-positioned to capitalize on this AI revolution. The company's expertise in areas such as computer vision, natural language processing, and recommendation systems could drive growth in its core short video platform and other AI-powered products and services.