Alibaba gains a value of $ 50 billion after the AI ​​Progressing fuels rally

The Chinese electronic commerce leader has posted a percentage of three -digit percentage in AI products related to AI as an increase of 26% of the 26% cloud division – the most closely linked to artificial intelligence boom.

This helped appease nervous investors about the benefits of an aggravation of the battle with Meituan and JD.com Inc. in Internet Commerce. Alibaba’s actions have won their most intraday since November 2022 in Hong Kong, increasing the business value of the company by more than $ 50 billion. The turnover in the stock marked a record in the early afternoon. The rally helped to boost the wider AI sphere: Ernie-Developer Bidu Inc. won up to 5.8%, while Tencent Holdings Ltd. also climbed.

“Alibaba’s profits highlight a bifurcation within Chinese technology: AI offers evolutionary growth, while traditional consumers’ segments remain embellished in destructive price competition,” said Charu Chanana, chief investment strategist at Saxo Markets.

“The three-digit overvoltage of Robust AI and Cloud sales show that Alibaba repositions a longer-term relevance in the technological pile, not just the domination of retail,” she added.

Alibaba’s progress in AI – where it is considered to be among the overlapping in the development of Chinese artificial intelligence – has shine concerns about the online trade in the three.

This imposed more damage than expected to some of the country’s electronic commerce: JD’s profit reduced by half during the quarter while Meituan warned against major losses, triggering a sale of 27 billion dollars of the shares of the three companies last week.

The element of AI helps to explain why Alibaba’s actions easily exceeded its rivals more authorized in trade this year. Alibaba has also exploited the growth of an international arm which includes some of the most recognized online shopping platforms in the world of Lazada in Aliexpress.

He has “the best thesis of China AI facilitator”, Morgan Stanley analysts, including Gary Yu, wrote in a research note. This represents the losses of the delivery of meals and the instant trade peak this quarter, they said.

Investors are now focusing on the question of whether Alibaba will continue this competition in terms of margin, at one time, he declared record amounts of spending to develop IA and IT services.

Friday, the head of commerce, Jiang Fan, argued that investment in fast trade – food delivery and instant purchases – had already resulted in 20% of users on his main Taobao market. The emerging division has grown in four months to the point that it can start to reach economies of scale, he added.

Alibaba simultaneously makes substantial investments in the field of AI, developing large models of language to avoid delay in a critical technological race.

The company considers AI as essential to its future, whether in terms of cloud computing, propeling its business or offering services to challenge Openai and Deepseek. CEO Eddie Wu went so far as to say in February that general artificial intelligence, or AGE, is now the main objective of the company.

Last week, Alibaba updated her own open -source videos generation model, part of a series of recent upgrades that extend to the range of chatbot agent services.

It remains to be seen if Alibaba can transform AI into a silver thoroughfare in an increasingly competitive field. From Baidu to Tencent, Chinese companies improve and release AI models at a frantic pace, increasing pressure on Alibaba to provide breakthroughs.

“Alibaba’s escape strengthens a broader theme in Asia: while global technology remains concerned about geopolitics and evaluations, some parts of Chinese technology are discreetly reactive – not by media threshing, but by real growth in IA and the cloud,” said Chanana. “It is not yet a large -scale rotation, but the divergence is real.”

“Alibaba’s escape strengthens a broader theme in Asia: while global technology remains concerned about geopolitics and evaluations, some parts of Chinese technology are discreetly reactive – not by media threshing, but by real growth in IA and the cloud,” said Chanana. “It is not yet a large -scale rotation, but the divergence is real.”