XD INC's stock price surged 5.62% during intraday trading on Wednesday, following the release of a bullish research report from China Merchants Securities.
The report maintains a strong positive view on leading game companies, including XD INC, citing that the advancement of AI technology is expected to accelerate game development and updates. This could help the gaming industry recapture user time from short-form video platforms and expand the overall market size.
China Merchants Securities highlighted that in the AI era, major game titles are likely to become more comprehensive and significant, potentially strengthening the competitive position of established industry leaders like XD INC. The firm focuses on IP operations, game publishing, and overall design—areas that are not easily replaced by AI and require substantial resources and experience.
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