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 doubling down on artificial intelligence with the launch of its new 5nm XuanTie C950 server chip, which it says is more than three times faster than its previous version and the highest-performing RISC-V CPU so far. The chip, developed by its T-Head unit, underpins Alibaba’s broader push into AI and cloud, even as its U.S.-listed shares remain pressured after a recent profit shock, with net income plunging 67% on heavy AI spending and an intense e-commerce price war.
The company has recently rolled out Wukong, a platform to manage AI agents, and Accio Work, a no-code AI operations tool for small and mid-sized businesses, while consolidating AI teams into a new Alibaba Token Hub led by CEO Eddie Wu to turn these tools into revenue. Despite near-term earnings pain, Wall Street remains bullish: Alibaba holds a Strong Buy rating, is still a “Top Pick” at Morgan Stanley with a $180 target, and the average price target of $188.38 implies about 49% upside, helped by its vertically integrated AI stack and an estimated T-Head valuation of up to $86 billion.