Alibaba ( (BABA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Alibaba is emerging as a key winner from China’s AI hardware reshuffle, as U.S. curbs make Nvidia’s top chips scarce and expensive. The company is shifting its AI stack to Huawei’s Ascend 950 processors and has already launched the DeepSeek model on Alibaba Cloud, allowing it to cut computing costs and offer AI services at steep discounts to gain market share.
This local‑chip strategy does not eliminate risk, as Huawei’s planned 750,000‑chip output in 2026 is seen as well below demand from Alibaba, Tencent, and ByteDance, prompting a race to secure supply. In parallel, Alibaba is quietly diluting shareholders through stock‑based compensation, lifting its share count from 19.13 billion to 19.19 billion in April, even as analysts keep a Strong Buy view, with average targets near $182 implying sizable upside if AI and cloud bets pay off.
Wall Street is betting that Alibaba’s push in AI and cloud can re‑rate a still‑profitable e‑commerce core, where revenues are stabilizing and management is targeting lower losses in quick commerce by fiscal 2029. Yet TipRanks’ Spark AI keeps a Neutral stance, flagging weaker cash flow and technicals, underscoring that Alibaba’s story remains a balance between robust balance‑sheet support, activist interest, and execution risk in capital‑intensive AI infrastructure.