Alibaba (BABA) Soars 3.25% on AI, Cloud Investments

On April 11, 2025, Baba's stock surged by 3.25% in pre-market trading, reflecting a strong start to the day's trading session.

Alibaba's CEO, Daniel Zhang, recently emphasized the company's commitment to AI and cloud infrastructure. During a speech at the Alibaba Cloud New Fiscal Year Kickoff event, Zhang highlighted the importance of AI in understanding and serving humanity, rather than replacing it. This focus on AI aligns with Alibaba's significant investment in AI and cloud infrastructure, totaling over 380 billion yuan over the next three years. This investment is aimed at enhancing AI and cloud computing capabilities, developing AI models, and integrating AI into existing business operations.

Analysts from various firms have maintained a positive outlook on Alibaba's stock. Schroders Securities (Hong Kong) has kept a "buy" rating with a target price of $157.00, citing strong growth in core e-commerce and cloud businesses. HSBC also maintains a "buy" rating with a target price of $136.00, noting the company's focus on core businesses and the potential for AI and cloud services to drive future growth. Both firms highlight the company's strategic investments in AI and cloud infrastructure as key drivers for future performance.

Alibaba's collaboration with other companies further underscores its commitment to innovation. For instance, the company has partnered with BMW to develop an AI engine and is rapidly iterating on its Tongyi Qianwen large model. These collaborations and investments are expected to enhance Alibaba's competitive position in the AI and cloud sectors, driving long-term growth and profitability.