Why Did Alibaba (BABA) Soar 3.08%? AI, Cloud Growth Spark Bullish Sentiment

On September 5, 2025, Alibaba's stock (BABA) surged by 3.08% in pre-market trading, reflecting a positive sentiment among investors.

Analysts have shown a strong bullish stance on Alibaba, with a majority rating the stock as a "Strong Buy." Out of 22 analysts covering the stock, 19 recommend a "Strong Buy," while one suggests a "Moderate Buy." This overwhelmingly positive outlook is driven by the company's robust performance in its cloud and AI sectors, which have seen significant growth.

Mizuho analyst Jason Helfstein recently raised the price target for Alibaba to $159.00, up from $149.00, while maintaining an "Outperform" rating. This move underscores the confidence in Alibaba's future prospects, particularly in its cloud and AI divisions. The company's Cloud Intelligence Group revenue grew by 26% year over year, with AI-related sales increasing at triple-digit rates. This rapid growth is supported by substantial investments in cloud and AI infrastructure, totaling 380 billion renminbi over the next three years.

Despite a challenging economic environment in China, with GDP growth slowing and retail sales softening, Alibaba remains a standout performer. The company's strategic focus on AI and cloud services positions it well for long-term growth, as these sectors are expected to see significant expansion in the coming years. With a strong consensus rating and positive analyst sentiment, Alibaba's stock continues to attract investor interest, driving its recent pre-market surge.