BABA(US:BABA) Yahoo Finance·2025-09-24 15:39Core Viewpoint - Alibaba's stock has seen a significant rally following the announcement of increased spending on artificial intelligence (AI), reflecting a trend seen in American tech stocks [1][3]. Group 1: AI Initiatives - Alibaba announced several AI initiatives, including a partnership with Nvidia and plans to open new data centers globally [3][4]. - The company introduced a new AI model with over 1 trillion parameters during its annual Apsara Conference [3]. - Earlier this year, Alibaba committed to spending $50 billion on AI infrastructure over the next three years [3]. Group 2: Stock Performance and Analyst Commentary - Following the AI announcements, Alibaba's stock rose by 9% as of 10:22 a.m. ET [1]. - Bank of America raised its price target for Alibaba from $168 to $195 and reiterated a buy rating, positioning Alibaba as a leading full-stack AI services provider [4]. Group 3: Financial Performance - Alibaba's organic revenue grew by 10% in the June quarter, reaching $34.6 billion, while adjusted EBITDA decreased by 11% to $6.4 billion [6]. - The cloud intelligence segment showed strong growth, increasing by 26% in the same quarter, indicating potential for future success in AI [7]. Group 4: Market Context - Alibaba has made a notable recovery after facing challenges from regulatory crackdowns and slow growth in the Chinese economy [5]. - The current AI boom has positively impacted Alibaba, similar to trends seen in other tech stocks [6].