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, China’s leading e-commerce and cloud services company, has been making significant strides in the artificial intelligence (AI) sector, which has become a crucial growth driver in cloud computing. The company has committed to investing 380 billion yuan ($53 billion) over three years to enhance its chip and cloud initiatives, reflecting its ambition to become a major player in AI and cloud services. Despite reporting mixed Q1 FY26 earnings, with revenue slightly below expectations, Alibaba’s cloud business showed robust growth, driven by increased demand for AI services. This has led to several Wall Street analysts raising their price targets for Alibaba, underscoring confidence in its expanding cloud and AI capabilities.
In a strategic move, Alibaba recently signed a landmark deal with China Unicom to deploy its AI chips in a new data center project, further cementing its role in China’s tech landscape. This partnership aligns with Beijing’s push for homegrown technology, especially as regulators have urged companies to halt orders of Nvidia’s new RTX 6000D chip. The announcement boosted Alibaba’s stock, reflecting investor confidence in its AI initiatives. With a Strong Buy consensus rating from analysts, Alibaba’s stock continues to be viewed favorably, despite its current price nearing its target.