MiniMax Group Inc.'s shares plunged after JPMorgan Chase & Co. slashed the Chinese AI model maker's price target for the second time in less than a week. The investment bank cited value dilution concerns stemming from fresh fundraising activities by the company.

The price target reduction marks a rare second cut in such a short period, signaling heightened skepticism about MiniMax's valuation trajectory. Analysts at JPMorgan emphasized that the new capital raise, while bolstering the balance sheet, significantly increases the share count and dilutes existing shareholders' equity value.

Market reaction was swift, with MiniMax shares dropping sharply in early trading. The move underscores growing investor sensitivity to dilution risk among Chinese AI ventures, particularly those pursuing aggressive expansion amid uncertain monetization timelines. JPMorgan's revised target reflects a more conservative stance on the sector's near-term profitability outlook.