Alibaba stock (BABA), the Chinese e-commerce giant, surged today, and investors are pretty stoked. The jump was not about one single headline but a mix of strong results, big moves in artificial intelligence, new backing from Wall Street, and heavy institutional buying. Together, these factors pushed BABA shares sharply higher.
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Alibaba Surprises on AI and Cloud Growth
Alibaba’s latest results showed how much its business is changing. Revenue from artificial intelligence surged, and its cloud division grew 26% compared with a year ago. This beat expectations and gave investors confidence that Alibaba is no longer just an e-commerce company.
For years, Alibaba was seen mainly as an online retail giant. Now the company is proving that its shift into AI and cloud computing has real momentum. This helped send its Hong Kong shares up nearly 19%, one of the biggest one-day gains in its history. U.S.-listed shares followed, rising about 13% to trade around $135.
Alibaba Develops Its Own AI Chip
The company also announced it has developed its own advanced AI chip. This was a big deal because it reduces Alibaba’s dependence on U.S. suppliers like Nvidia (NVDA), especially at a time when trade restrictions remain tense.
By building its own chips, Alibaba shows it is serious about controlling its future in AI. Investors saw this as proof that the company is committed to staying competitive in the global tech race. It also strengthens Alibaba’s position inside China, where demand for AI infrastructure is exploding.
JPMorgan Raises Its Target
The positive news caught the attention of Wall Street analysts. JPMorgan’s Alex Yao raised his price target on Alibaba stock from $140 to $170 and kept its “Overweight” rating. This type of upgrade often signals to big investors that there is still room for shares to run.
Analysts pointed to growth in both cloud and AI as the main drivers. They believe the momentum could keep pushing Alibaba stock higher, especially if more global funds start rotating back into Chinese tech.
Big Investors Add More Shares
Institutional buying gave the rally even more fuel. Reports show that major firms like Goldman Sachs (GS), Mirae Asset, and Ieq Capital all raised their positions in Alibaba. When large funds increase exposure, it often boosts confidence across the market.
The steady inflow of institutional money suggests that investors with long time horizons see value in the stock, even after its big moves. That kind of support can help keep a rally going.
The move shows how quickly sentiment can shift when a company proves it is executing on growth stories that matter. For Alibaba, this means convincing the market that it is just as much a tech innovator as it is a retail powerhouse.
Is Alibaba Stock a Good Buy?
Turning to TipRanks, Wall Street is lining up behind Alibaba stock. Out of 13 analysts who rated the company in the past three months, 12 call it a Buy and just one calls it a Hold. None recommend selling.
The average 12-month BABA price target sits at $152.63, which is about 13% higher than the latest share price of $135.
