BABA

Alibaba's stock surged by 6.76% pre-market on August 29, 2025, driven by strong Q1 revenue of $34.6 billion and significant growth in AI and cloud computing. The company's core businesses, including cloud computing and e-commerce, showed robust revenue growth, with AI-related income rising significantly.

The development of a new AI chip by Alibaba to reduce its reliance on Nvidia has been well-received, boosting the stock by 8.9%. This strategic move is part of a broader plan to invest $53 billion over three years in AI infrastructure, reflecting its ambition to strengthen technological prowess amid the broader U.S.–China tech rivalry.

Alibaba has been actively returning value to shareholders through significant buybacks and dividends, which has contributed to its positive market sentiment.