Alibaba (BABA) Reaffirmed “Overweight” by Morgan Stanley Amid Cloud Acceleration

Core Insights - Alibaba Group Holding Limited (NYSE:BABA) is being closely monitored by investors as a significant AI stock, with Morgan Stanley reiterating an "Overweight" rating and increasing its price target from $165 to $200 per share due to accelerating growth in its cloud division and sustained momentum in core operations [1] Group 1: Cloud Growth Estimates - Morgan Stanley has raised its cloud growth estimates to 32% for fiscal year 2026 and 40% for fiscal year 2027, driven by increased capital expenditures, model upgrades, strategic partnerships, and accelerated international expansion [2] - The firm is more optimistic about Alicloud following insights gained from the company's Apsara Conference [2] Group 2: Capital Expenditure and Demand - Capital expenditure estimates have been increased to Rmb130-135 billion annually for fiscal years 2026-2028, up from previous estimates of Rmb100 billion-108 billion, with an assumption of 10-15GW additional datacenter capacity by 2032 [3] - There is solid demand for Alibaba's services, with the number of tokens reportedly doubling every 2-3 months [3] Group 3: Market Position - Alibaba Group is recognized as an internet giant providing e-commerce services both in China and internationally [3]