ZACKS·2025-07-10 15:46Core Insights - Alibaba is actively expanding its AI infrastructure to meet the growing demand for generative AI, positioning Alibaba Cloud as a key component of its long-term growth strategy [2][10] - In Q4 of fiscal 2025, Alibaba's Cloud Intelligence Group reported revenues of RMB 30.1 billion ($4.15 billion), marking an 18% year-over-year increase and contributing approximately 12.7% to total revenues [3] - The company has committed RMB 380 billion ($52.7 billion) over three years to enhance its global cloud infrastructure, with recent openings of data centers in Malaysia and plans for a facility in the Philippines by October 2025 [4][10] Infrastructure Expansion - Alibaba Cloud's global infrastructure will expand to 90 availability zones across 29 regions, following investments in Thailand, Mexico, and South Korea [5] - This expansion aims to meet the rising global demand for secure and scalable cloud solutions amid the rapid adoption of AI across various industries [5] Competitive Landscape - Alibaba Cloud faces significant competition from Amazon and Microsoft, both of which are increasing their investments in global infrastructure [6][7] - Amazon is expanding its AI-ready data centers across multiple regions, while Microsoft has opened new data center regions to cater to enterprise demand [6][7] Financial Performance - Alibaba's stock has increased by 22.5% year-to-date, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector, which grew by 6% and 4.1%, respectively [8] - The stock is currently trading at a forward 12-month Price/Earnings ratio of 9.76X, significantly lower than the industry's 24.59X, indicating a favorable valuation [12]