Alibaba Stock Surges on Apple AI Partnership

Alibaba Group Holding Ltd. (NYSE: BABA) shares surged on Wednesday, February 12, 2025, following reports that the e-commerce giant has made significant progress in its partnership with Apple Inc. (NASDAQ: AAPL) to roll out artificial-intelligence features in China. The news sent Alibaba's Hong Kong-listed shares up 7.8% to 113.10 Hong Kong dollars, equivalent to $14.53, on track for their biggest daily gain since September 2021.

The partnership between Apple and Alibaba is a critical catalyst for Apple's competitive standing in China, according to Morgan Stanley analysts. The companies have co-developed artificial intelligence features and submitted them to Chinese internet regulators, according to a Reuters report citing The Information. Apple and Alibaba did not immediately respond to requests for comment.



The reported partnership comes as Apple Intelligence, a key selling point of the iPhone 16, has been unavailable in China since its October launch. Greater China was the only region where Apple's first-quarter sales declined year-over-year, and iPhone sales in the country missed analysts' expectations. Morgan Stanley analysts suggested that the Alibaba partnership could solve Apple's iPhone sales slump in China.

Alibaba's shares have been on a tear in recent months, surging 46% since hitting a 2025 low on Jan. 13. The stock's rally has been driven by optimism about Alibaba's efforts to develop its own AI services and platform, as well as the broader market conditions favoring Chinese artificial intelligence stocks. The partnership with Apple is another boost for Alibaba's AI capabilities and market position, as it provides a strong endorsement of the e-commerce giant's AI expertise.



In conclusion, the partnership between Apple and Alibaba to develop AI features for iPhones in China has significantly influenced Alibaba's valuation and investor sentiment. The partnership has led to a surge in Alibaba's stock price, an expansion in its market capitalization, and an increase in investor confidence in the company's AI initiatives. Additionally, the broader market conditions, particularly the growing interest in AI, have contributed to Alibaba's improved valuation and investor sentiment. As the partnership progresses, investors should closely monitor the developments to assess the potential impact on Alibaba's AI capabilities, market position, and revenue streams.