Gaotu Techedu Inc. (GOTU) shares soared 5.02% in premarket trading on Monday, riding on the optimistic wave surrounding Chinese technology companies and their potential in the artificial intelligence (AI) space.
The rally in Gaotu and other Chinese tech stocks was fueled by renewed investor interest following the recent release of advanced AI models like DeepSeek. Market analysts believe these AI innovations could be a game-changer for Chinese tech giants, shifting the focus from risks to growth potential.
As quoted in the news, portfolio manager Jian Shi Cortesi said, "The refreshed attention could shift investor focus from 'thinking about risks' to 'thinking about potential' when they look at the large Chinese internet names." Alphalex Capital's Alex Au also stated that DeepSeek has "significantly aroused international investors' interest in Chinese tech again."
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