Alibaba's 23.92 Billion Trading Volume Ranks 14th Amid AI Data Center Bubble Fears

On March 25, 2025, Alibaba (BABA) experienced a trading volume of 23.92 billion, ranking 14th in the day's stock market activity. The stock price fell by 1.29%, marking the fourth consecutive day of decline, with a total decrease of 7.30% over the past four days.

Alibaba's Chairman Joe Tsai has raised concerns about the rapid expansion of AI data centers, warning that the current pace of construction may lead to a bubble. Tsai noted that many data center projects are being built "on spec," without specific customer agreements or even particular customers in mind. This trend has sparked worries about over-ordering and potential oversupply in the AI data center sector.

Tsai's comments came during the HSBC Global Investment Summit in Hong Kong, where he highlighted the rush by big tech firms to roll out data centers for hyperscalers. This includes companies like Amazon Web Services, Microsoft's Azure, Google's Cloud Platform, Oracle, IBM, Alibaba, Huawei, and Tencent. The rapid construction of these data centers, often without guaranteed customer uptake, has raised concerns about a potential bubble in the market.

Tsai's warnings have added to market jitters, particularly in the tech sector. The Hang Seng index in Hong Kong dropped 2.35%, its steepest fall in three weeks, with smartphone manufacturer Xiaomi being one of the hardest hit. The sell-off in Chinese tech stocks reflects investor caution and reassessment of regional allocations ahead of the second quarter.