Alibaba Group Holding Limited (NYSE:BABA) continues to position itself as a major force in artificial intelligence and cloud computing as it invests to drive long-term growth.
The stock is up over 77% year-to-date as its cloud unit and AI models drive value.
The Chinese e-commerce and tech juggernaut is moving to unlock more value from its AI strategy by scaling its Qwen models across consumer apps, cloud services, and hardware, while also gaining validation from global peers.
Also Read: Alibaba’s New AI App Qwen Becomes One Of Fastest-Growing Globally
Analyst View
Nomura remains constructive on Alibaba’s artificial intelligence trajectory, citing accelerating innovation across China’s tech sector.
Shi Jialong, Nomura’s head of China internet and media industry research, said Alibaba is well positioned to benefit from rising AI adoption and expanding use cases, Futunn News reported on Tuesday.
Nomura’s China technology and telecommunications analyst Duan Bing added that Chinese companies are rapidly advancing AI technologies, with application software attracting more users and helping firms scale their businesses.
He said Beijing is pushing to build a self-sufficient domestic AI supply chain, although advanced AI chips remain a key constraint. Still, Duan expects continued policy support to help local chipmakers and AI companies close the gap.
Meta Taps Alibaba’s Qwen Models
Alibaba’s AI ambitions are gaining traction beyond China. Meta Platforms Inc. (NASDAQ:META) has adopted Alibaba’s open-source Qwen models as part of its effort to rebuild its AI stack, highlighting Qwen’s growing international relevance.
At home, Alibaba created the Qwen Consumer Business Group to unify its chatbot, assistants, cloud tools, and AI hardware into a single platform. It marks the company’s efforts to make Qwen a cross-device “super app.”
By keeping Qwen open source and expanding real-world use cases, Alibaba is boosting adoption, strengthening its cloud business, and positioning AI as a key long-term growth engine.
Earnings Snapshot
On November 25, Alibaba reported fiscal second-quarter results that topped expectations.
The company posted revenue of $34.81 billion, up 5% year over year and above the $34.43 billion consensus. On a like-for-like basis, revenue would have grown 15% after excluding divested businesses.
Alibaba delivered adjusted earnings of 61 cents per ADS, beating the 49-cent estimate.
However, adjusted net income fell 72% to $1.45 billion, while adjusted EBITA dropped 78% to $1.27 billion as the company increased spending on quick commerce, user experience upgrades, acquisitions, and technology.
China e-commerce revenue climbed 16% to $18.62 billion, driven by faster onboarding of Tmall brands and rising quick-commerce demand.
International commerce revenue rose 10% to $4.89 billion as AliExpress expanded local inventory.
The Cloud Intelligence Group grew revenue 34% to $5.59 billion, fueled by strong public cloud demand and accelerating AI adoption.
Alibaba remains in an investment phase, prioritizing AI, cloud infrastructure, and a unified consumption platform, even as near-term profitability fluctuates.
BABA Price Action: Alibaba shares were down 1.43% at $147.94 during premarket trading on Tuesday, according to Benzinga Pro data.
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