BABA(US:BABA) Investors·2025-09-29 12:39Core Viewpoint - Alibaba Group is experiencing a significant stock rally driven by bullish analyst sentiments, increased capital expenditures for AI infrastructure, and a new partnership with Nvidia, leading to a surge in stock prices and target estimates from various analysts [2][4][6]. Group 1: Stock Performance - Alibaba stock has gained over 102% year-to-date, with a notable 27% increase in September alone, excluding early gains on Monday [6]. - The stock reached its highest level since October 2021, with an 8% increase last Wednesday, followed by a slight pullback of 2.5% on Thursday and Friday [3][6]. Group 2: Analyst Upgrades - Morningstar raised its fair value estimate for Alibaba stock by 49% to $267, citing the necessity of higher capital expenditures to meet unexpected demand for AI infrastructure [4]. - Jefferies also increased its target price for Alibaba stock from $178 to $230, reflecting confidence in the company's cloud momentum [4]. - The average target price among 53 analysts covering Alibaba stock has risen to $181.32 from $160.75 at the end of August, with 92% of analysts maintaining a buy or equivalent rating [5]. Group 3: AI Infrastructure and Partnerships - Alibaba's CEO announced plans to exceed the previously stated $53 billion investment over three years for AI infrastructure development, driven by demand that surpasses expectations [2]. - A new partnership with Nvidia focused on physical AI has contributed to the positive market sentiment surrounding Alibaba [3].