Ge Long Hui·2025-10-02 02:29Core Viewpoint - Morgan Stanley has significantly raised Alibaba's target price for Hong Kong stocks to HKD 240, citing growth in cloud computing and e-commerce as key drivers for a higher valuation [1] Group 1: Cloud Computing Growth - Alibaba Cloud's revenue growth has accelerated for eight consecutive quarters, with a year-on-year increase of 26% expected in Q2 2025, driven by demand from generative AI in sectors like internet, autonomous driving, and embodied intelligence [1] - The adoption rate of generative AI in China is anticipated to surpass that of the previous Software as a Service (SaaS) wave, due to broader efficiency improvements and lower deployment barriers [1] Group 2: Future Projections - Over the next 12 to 36 months, generative AI is expected to transition from trial phases to agent automation, impacting areas such as marketing, service, coding, financial operations, and supply chain [1] - Service costs are projected to decline steadily, with higher conversion rates and throughput for most customer-facing channels [1] Group 3: Target Price Adjustments - The target price for Alibaba's U.S. stocks has been raised from USD 170 to USD 245, while the target price for Hong Kong stocks has been increased from HKD 165 to HKD 240 [1]