Shares of iQiyi Inc., a leading Chinese online video streaming platform, surged 5.04% in premarket trading on Monday. The stock's rally was fuelled by a broader upswing in Chinese tech stocks, driven by rising optimism surrounding the potential impact of artificial intelligence (AI) technologies on these companies.

The premarket rally followed a weekend of positive sentiment towards Chinese tech firms, particularly after the release of DeepSeek, a cutting-edge AI model developed by a Chinese startup. Market watchers anticipate that the introduction of advanced AI models like DeepSeek could be a game-changer for Chinese tech giants, shifting investor focus from risk concerns to the potential upside offered by AI.

Investors are betting that the adoption of AI technologies, including large language models and generative AI, will accelerate across various industries in China, benefiting tech companies like iQiyi. The company's video streaming platform and content creation capabilities could potentially leverage AI to enhance user experiences, personalization, and content recommendations, driving growth and profitability.