Alibaba Group Holding noted that stocks rose on Monday after two major investment companies raised their price targets, pointing to a rise in growth expectations for its cloud computing and artificial intelligence sectors.
Morningstar has increased the fair value estimate of Alibaba’s American deposit receipt by 49% to $267. The company also set its Hong Kong listed stock at $260. Separately, Morgan Stanley has raised its ADR price target from 21% by $200.
Hong Kong listed stock rose by over 173 Hong Kong by 4.1% during Monday’s session. This brought the company’s profits to nearly 50% this month, leading to the top of the Hang Seng Tech Index.
Chelsitum, a senior equity analyst at Morningstar, wrote in a note that the stock appears to be undervalued. She said several things will help grow cloud revenues, including more money to overseas data centers, strong competition outcomes, wider use of the company’s open source model, and better performance of chips developed internally.
As reported by Bloomberg, Morgan Stanley analysts I said They became more positive about Alikrowd after the meeting in Hangzhou. At that event, Alibaba announced plans to spend more on AI and revealed a new partnership with Nvidia.
Cloud growth forecasts rose to 40%
His team, Gary Yu and Morgan Stanley, raised the cloud growth forecast for fiscal year 2026 to 32% and 40% for fiscal year 2027. Analysts said the higher estimates reflect capital expenditures, model improvements, strategic partnerships and the speed of expansion into international markets.
Alibaba’s Hong Kong-listed stocks have been paced at its best month since the company was launched in 2019. Investors are helping internet companies invest in AI as a way to drive growth. In the most recent quarter, the company reported triple-digit growth in its AI-related products. The cloud division also brought sales growth beyond expectations.
As optimism builds, Cathie Wood’s ARK Investment Management Positions resumed at Alibaba ADR this month. It was the first time the company bought $16 billion worth of Alibaba stock in four years. Half of that amount went into the Ark Fintech Innovation ETF, and the rest went into the Ark Next Generation Internet ETF. Since 2021, she marked a massive purchase of her first company.
Strategic NVIDIA Partnership to Bypass US Chip Limitations
As reported by Cryptopolitan, Alibaba’s global AI spending could reach $4 trillion over the next five years. Eddie said there was a risk that Alibaba would need to keep up with that pace or would be left behind.
Alibaba is currently pursuing the same opportunities as Amazon, Microsoft, Alphabet and Meta. These companies are expected to spend $364 billion on AI next year, up from their previous $325 billion estimate.
The company has also signed an agreement with Nvidia Use that training tool For robotics and self-driving cars. Financial terms have not been revealed, but partnerships carry weight. US restrictions have made it difficult for Chinese companies to buy Nvidia chips, so Alibaba is circumventing those restrictions.
Other Chinese companies are also developing domestic chips to replace American technology, including processors used to train and operate large-scale AI systems.
Eddie wants the company to become a complete AI provider that includes manufacturing its own chips. The cloud division already serves clients in the US and Australia, and is now expanding its scope.
The new data centers are open in France, France and the Netherlands. These facilities support the next stage of Alibaba’s AI infrastructure. The company’s shares rose 110% in 2025.
Cloud revenues rose 26% year-on-year in the second quarter. Eddie has identified AI, cloud and e-commerce as the company’s three major growth drivers, with AI currently taking the lead role.
Other companies see similar impacts from AI investments. Oracle put $35 billion into AI infrastructure in 2026, with the number expected to reach $65 billion by 2029. Oracle’s stock has skyrocketed thanks to new partnerships with Openai, Meta and Softbank, adding $390 billion in value this year.
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