ZTE Shares Surge 7% as Second-Gen 'Doubao Phone' Nears Launch, Morgan Stanley Sees Key Inflection Point

ZTE shares have surged 7% once again as of writing.

This movement is driven by recent developments. Ni Fei, President of ZTE's Terminal Business Unit, recently stated on social media that the company's Nubia brand will launch the "world's first AI agent phone," with its debut scheduled for the World Artificial Intelligence Conference opening on July 17. Media reports, citing informed sources, indicate that this AI agent phone is precisely the second generation of the "Doubao Phone."

Huatai Securities previously noted its optimism regarding the company's comprehensive, long-term strategic layout in the computing power sector. The brokerage anticipates that as ZTE's self-developed computing power chips complete their product and customer introduction phases, profitability in its government and enterprise business segment is expected to improve.

Morgan Stanley has previously expressed the view that a key inflection point for the company is likely to occur in the second half of 2026. By that time, a low base effect is expected to support a return to positive earnings growth. With investor focus shifting towards the recovery phase, coupled with the re-emergence of AI catalysts, a potential re-rating of the stock may be on the horizon.