Alibaba's Cloud Growth Surges 26% as AI Drives Success
Alibaba Group Holding Ltd has seen a significant boost in its international trading platform, growing by 19%. The company's stock has also performed impressively, outpacing its competitors.
Alibaba's cloud segment has been a key driver of this growth. In the quarter ending June 2025, cloud revenue grew by 26% year-over-year. This growth is even more notable given that Alibaba plans to invest a total of 53 billion USD in AI and iCloud infrastructure over the next three years.
AI products have been a significant contributor to this growth, accounting for over 20% of Alibaba's external cloud sales and growing at triple-digit rates. This success is reflected in Alibaba's launch of Qwen3-Max, an AI model with over one billion parameters, positioning the company as a competitor to global AI heavyweights.
Analysts have taken note of Alibaba's progress. Tiger Securities, specifically analyst Bo Pei, downgraded the stock from 'Buy' to 'Hold' in October 2025, citing limited upside potential. However, JPMorgan has increased its price target for Alibaba from 170 to 245 USD, a jump of over 44%, maintaining an 'Overweight' rating.
Alibaba's impressive growth in its cloud segment, driven by AI products, has led to a significant capital influx of 3.2 billion USD. With plans to expand data centers and iCloud infrastructure, Alibaba is well-positioned to continue its growth trajectory. The company is already benefiting from its AI offensive, putting it ahead of many of its competitors.
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