Alibaba’s AI Surge: Can the Rally Keep Going?

Alibaba’s U.S.-traded shares have soared nearly 70% in 2025, fueled by China’s AI boom and strong earnings. The company’s AI product revenue has grown triple digits for six straight quarters, and its Qwen AI model is now integrated into iPhones in China.
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​Why Is Alibaba Booming?
✔ AI Growth – Alibaba is proving itself as a serious rival to DeepSeek in China’s AI race.
✔ Jack Ma’s Return – His public reappearance with President Xi Jinping signals a more supportive government stance.
✔ Analyst Optimism – Jefferies sees an 8% upside (target: $156), and UBS swapped PDD for Alibaba in its model portfolio.

Can the Stock Keep Climbing?
💰 The Bulls Say Yes:
• JPMorgan is bullish on Alibaba, betting on continued AI expansion.
• Several investment firms rate it a buy.

🐻 The Bears Are Cautious:
• Morgan Stanley sees a 30% downside (target: $100), warning about high capital spending and weaker consumer demand.

The Bottom Line
Alibaba’s AI momentum is strong, but risks remain. If AI keeps booming, the stock could rise further—but if China’s economy weakens, investors may cash out early.



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