Zhi Tong Cai Jing·2025-09-25 06:12Core Viewpoint - Bank of America Securities has raised Alibaba's (09988, BABA.US) earnings per ADS forecast for fiscal years 2026 to 2028 by 0% to 4% and increased the target price from $168 to $195, which corresponds to a target price of HKD 190 for Alibaba's Hong Kong stock, based on a projected compound annual growth rate of over 30% for its cloud business and a solid e-commerce outlook, reaffirming a "Buy" rating on Alibaba [1] Group 1 - Alibaba is set to exceed its original budget of RMB 380 billion for investments in artificial intelligence and cloud computing over the next three years, as emphasized by Alibaba Cloud CEO Wu Yongming during the 2025 Cloud Summit [1] - Management believes that large models will become the next generation operating system, and AI cloud will represent the next generation of computing [1] - The company positions itself as a leading global full-stack AI service provider, offering top-tier large models, a global AI cloud network, and a developer-friendly ecosystem [1] Group 2 - Alibaba is optimistic about the growth potential of its cloud business, driven by strong AI-native demand, international expansion, and increased AI adoption in traditional industries [1] - Bank of America Securities anticipates rapid growth in verticals such as electric vehicles, finance, and embodied intelligence, supported by Alibaba's full-stack "cloud + AI" services [1]