CNBCยท2025-09-01 07:42Core Insights - Alibaba's Hong Kong-listed shares surged over 19% due to strong quarterly results driven by its cloud computing unit and new AI chip development [1][2] - The stock reached its highest level since March, reflecting investor confidence in Alibaba's improving performance and investments in competitive areas like instant commerce [2] Financial Performance - For the June quarter, Alibaba reported revenue of 247.65 billion Chinese yuan ($34.73 billion), a 2% year-on-year increase, which fell short of analyst expectations [3] - Net income saw a significant annual increase of 78%, exceeding forecasts [3] - The cloud computing unit's revenue grew by 26% year-on-year, marking an acceleration in growth compared to previous quarters [3] AI and Technology Investments - Alibaba is investing in AI infrastructure and developing its own AI models, aiming to monetize artificial intelligence through its cloud computing unit [4] - AI-related product revenue has maintained triple-digit year-over-year growth for eight consecutive quarters [4] - The company is also developing a new AI chip, contributing to the recent share price rally [5] E-commerce Developments - Alibaba's core e-commerce business is showing signs of revival, particularly with its entry into the competitive instant commerce market in China [5] - The instant commerce feature on Taobao allows for deliveries within an hour, enhancing the company's service offerings [5] - Investments in quick commerce have impacted adjusted earnings for the e-commerce segment, but investors are currently supportive of these strategic investments [6]