KAIYUAN SECURITIES·2025-11-25 14:15Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Insights - The report highlights that Alibaba Cloud's revenue for FY2026Q2 reached 39.824 billion yuan, a year-on-year increase of 34%, significantly surpassing the 26% growth in FY2026Q1. Capital expenditures also saw a substantial rise, with total capital expenditure at 31.501 billion yuan, up 80.10% year-on-year, indicating a strong investment in AI capabilities [4][5] - The growth momentum of Alibaba Cloud is primarily driven by the increase in public cloud business revenue, particularly from AI-related products, which have seen triple-digit year-on-year growth for nine consecutive quarters. Alibaba continues to invest in customer growth and technological innovation to enhance cloud penetration in the AI sector [5] Summary by Sections Section 1: Revenue and Capital Expenditure - Alibaba Cloud's revenue for FY2026Q2 was 39.824 billion yuan, a 34% increase year-on-year, while capital expenditures reached 31.501 billion yuan, reflecting an 80.10% year-on-year growth [4] Section 2: AI Product Growth - AI-related product revenue has consistently achieved triple-digit year-on-year growth for nine quarters, with Alibaba's AI model downloads exceeding 700 million globally [5] Section 3: Infrastructure Expansion - Alibaba Cloud has expanded its global infrastructure to 29 regions and 92 availability zones, with new data centers launched in Dubai and Malaysia [5] Section 4: Investment Recommendations - The report recommends several stocks across various segments, including AI computing, optical communication, and data centers, indicating a bullish outlook on the domestic AI computing industry chain [6]