Alibaba (BABA) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
BABA's AI reaches global parity with superior cost efficiency, positioning it well for Asia's adoption curve. However, geopolitical risks persist.
Chinese tech giants Alibaba and Baidu have started using internally designed chips to train their AI models, partially replacing AI chips made by Nvidia , according to a report by The Information on Thursday, citing four people with direct knowledge of the matter.
China's Alibaba , is looking to raise about $3.2 billion in a zero-coupon convertible note offering to strengthen its cloud infrastructure and expand its international business, the company said on Thursday.
Its own stock holdings are discussed so often that it's easy to forget Berkshire Hathaway (BRK.A -1.34%) (BRK.B -1.24%) is a publicly traded outfit in and of itself. And a big one.
Alibaba Group (BABA 4.08%) has tested investors' patience over the past few years. From regulatory crackdowns to slowing consumer spending and intensifying competition from Pinduoduo and Meituan, the company went from China's undisputed tech champion to a stock many investors gave up on.
Equities swooned in both China and Hong Kong, led by semiconductor and tech hardware stocks, which had risen the most over the past weeks.
BABA's Cloud Intelligence rises 26% with triple-digit AI revenue growth, but rivals and rising costs test its momentum.
BABA's AI prowess has finally been noticed by the wider market, as it seeks to consolidate its hyperscaler capability across custom AI chip and in-house LLM capabilities. The same has been observed in the "AI-related product revenue maintaining triple-digit growth for the eighth consecutive quarter" and the +25.8% YoY cloud revenue growth. This is on top of BABA's intensified efforts in instant commerce, with it already triggering the growing user base and domestic revenues by the double digits.
Alibaba stock (NYSE:BABA) experienced an increase of nearly 13% in trading on Friday, reaching approximately $135 per share. BABA stock is also up by close to 60% year-to-date.
Alibaba Group Holding Limited's stock jumped post-earnings despite a double miss, as adjusted revenue growth reached 10% YoY after excluding one-off business disposals. Domestic e-commerce shows early signs of rebound, driven by strong Quick Commerce traffic, which lifted Taobao's DAUs and MAUs by over 20%. Cloud revenue accelerated to 26% YoY in Q1 FY2026, up from 17.7% in the prior quarter, and management expects strong AI demand to continue.
I am now turning ultra bullish on Alibaba, with the growth in its cloud business as the main pillar of my thesis. The (likely) in-house AI chip, built in China, could fill the gap left by Nvidia's H20 and be a major catalyst for the cloud business. Furthermore, I see regulatory tailwinds. In the last quarter, the cloud intelligence group posted 26% yoy growth, with AI products reporting triple digit growth for eight straight quarters. Alibaba is becoming an AI stock.