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Alibaba’s $53 Billion Bet on AI and Cloud

Alibaba’s $53 Billion Bet on AI and Cloud

Alibaba ( (BABA) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Alibaba is making significant strides in its cloud and AI sectors, with a bold $53 billion investment plan over the next three years to enhance these capabilities. This ambitious move is expected to drive substantial growth in Alibaba’s cloud division, which has already shown impressive momentum with a 13% year-over-year revenue increase in the third quarter of fiscal 2025. The company’s cloud arm is becoming a key player in China’s AI sector, generating around $20 billion in revenue annually, and is poised for further expansion as AI adoption rises.

The company’s strategic focus on AI and cloud technology is gaining attention from analysts, with Barclays analyst Jiong Shao giving Alibaba stock an Overweight rating and a price target of $180, indicating a 60.3% upside potential. As Alibaba prepares to report its Fiscal Q4 2025 earnings, all eyes are on the cloud business, which is expected to contribute significantly to the company’s growth. With a Strong Buy consensus rating from analysts, Alibaba’s stock is seen as a promising investment opportunity in the evolving tech landscape.

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