Highlights;
- Alibaba’s Hong Kong shares surged over 19%, driven by strong quarterly results from its cloud computing unit and AI chip development.
- Revenue grew 2% YoY to $34.73 billion, missing expectations, but net income rose 78%, beating forecasts.
- Cloud revenue jumped 26% annually, with AI-related products maintaining triple-digit growth for the eighth quarter.
- The company is investing in AI, instant commerce, and a new AI chip, supporting the stock rally.
- Alibaba’s e-commerce business is reviving, with a focus on quick delivery services.
Alibaba’s Hong Kong-Listed Shares Soar 19% Amid Strong Cloud Computing Results and AI Chip Development
Shares of Alibaba Group Holding Ltd. saw a significant surge of over 19% in Hong Kong on Monday, driven by strong quarterly results from its cloud computing division and growing excitement over its new AI chip development. The stock reached its highest level since March, reflecting investor confidence in the company’s improving performance and strategic investments in key areas, including the highly competitive “instant commerce” sector in China.
The rally in Hong Kong builds on the momentum from Alibaba’s earnings report on Friday, where its New York-listed shares closed nearly 13% higher. Despite revenue for the June quarter coming in at 247.65 billion Chinese yuan ($34.73 billion)—a 2% year-on-year increase that slightly missed analyst expectations—Alibaba’s net income surged 78% annually, exceeding forecasts.
The cloud computing unit emerged as a standout performer, with revenue growing 26% year-over-year, marking an acceleration from the previous quarter. This robust growth underscores the importance of the division to Alibaba’s future, particularly as the company leverages its cloud capabilities to expand into artificial intelligence.
Alibaba, like its U.S. and Chinese tech rivals, has been heavily investing in AI infrastructure, developing its own models, and offering AI services through its cloud platform. Investors view this division as pivotal to the company’s efforts to monetize AI, drawing comparisons to industry leaders like Microsoft and Google. Notably, AI-related product revenue has maintained triple-digit year-over-year growth for the eighth consecutive quarter.
On Friday, CNBC reported that Alibaba is developing a new AI chip, further fueling investor optimism. This news, combined with the company’s strong cloud performance, contributed to the share price rally on Monday.
In addition to its cloud and AI initiatives, Alibaba’s core e-commerce business is showing signs of revival. The company has also made a significant push into China’s fiercely competitive instant commerce market. This year, Alibaba introduced a feature on Taobao, one of its main Chinese e-commerce apps, promising delivery of certain products within an hour. However, investments in quick commerce have weighed on the company’s adjusted earnings for its e-commerce segment. Investors, however, appear willing to give Alibaba leeway to continue investing in these growth areas.
Source: https://www.cnbc.com/2025/09/01/alibaba-shares-hong-kong-today.html
