Alibaba's $100 Billion Rally: AI Investments and Jack Ma's Return Fuel Optimism

Alibaba has staged a quiet $100 billion rally -- AI and Jack Ma's return are at the heart of it

The Alibaba office building in Nanjing, Jiangsu province, China, on Aug. 28, 2024. In November 2023, Jack Ma posted an internal memo at Alibaba, urging the e-commerce giant he helped create to "correct its course." The message was as a rallying cry by one of China's most prominent tech leaders to a company going through one of the most tumultuous times in its history. Alibaba's share price was near record lows, growth was stalling amid intensifying competition, management changes were coming thick and fast, and Beijing was still closely scrutinizing the company. Ma himself was barely in the public view. But his message may have instilled some new hope in Alibaba -- the e-commerce giant is now seeing growth in its core business and has become one of the leading artificial intelligence players in China and globally, competing with the likes of OpenAI and DeepSeek. And Alibaba is now back in favor with the Chinese government. Alibaba's U.S.-listed shares have quietly risen nearly 60% this year, adding more than $100 billion to the company's valuation. "China tech has awoken being led by Alibaba and investors globally are viewing this as the best way to way China tech ... and we agree. Alibaba is in pole position to benefit from AI and cloud spend," Dan Ives, global head of technology research at Wedbush Securities, told CNBC. CNBC spoke to Alibaba's chairman as well as a former executive and analysts, who painted a picture of the changes at the tech firm that have led to the start of the company's comeback.

Alibaba's AI-Driven Rally Signals China Tech's Revival, Reports CNBC - Alibaba Gr Hldgs (NYSE:BABA)

Markets are swinging wildly, but for Matt Maley, it's just another opportunity to trade. His clear, simple trade alerts have helped members lock in gains as high as 100% and 450%. Now, you can get his next trade signal -- completely free. Alibaba Group Holding BABA stock noted a turnaround after grappling with regulatory crackdowns, leadership reshuffles, and collapsing market confidence. A rallying call from co-founder Jack Ma in late 2023 helped ignite a turnaround that has pushed the company's U.S.-listed shares up nearly 60% year-to-date, adding more than $100 billion to its valuation, CNBC reported Friday Ma's internal message urging Alibaba to "correct its course" signaled a renewed focus on core businesses and reinvigorated investor sentiment. Also Read: Alibaba Co-Founder Jack Ma Makes Rare Appearance At Company Campus Under the leadership of Eddie Wu and Joe Tsai, the company has since leaned into artificial intelligence and streamlined its operations. Alibaba's earlier struggles began with the sudden halt of affiliate Ant Group's record-setting IPO in 2020, following remarks by Ma that appeared to challenge China's regulators. That event set off years of intensified scrutiny, fines and forced restructuring across China's tech sector. As regulatory pressure mounted, Alibaba's valuation and market presence suffered significantly. In 2023, Alibaba underwent a sweeping reorganization, breaking into six semi-independent units and installing new leadership. Wu and Tsai opted to realign the company around its e-commerce and cloud computing operations, rolling back the fragmented business structure. Its deep push into AI has been a key catalyst for Alibaba's revival. The release of its Qwen family of open-source models positioned the company as a serious player in generative AI, rivaling global leaders like OpenAI. Alibaba's popularity on Hugging Face underscores the international reach of its technology. These models support advanced tasks across video, text and image generation. Executives expect this to be a significant growth engine, with the company planning to invest over $50 billion into AI infrastructure through 2027. The return of Ma to public view, particularly during a high-profile meeting with President Xi Jinping in February, signaled improved relations between Alibaba and China's leadership. Analysts have noted Alibaba's sharp turnaround. Dan Ives of Wedbush Securities called Alibaba the "best way to play China tech," citing its strong positioning in AI and cloud. Chelsey Tam of Morningstar emphasized that Beijing's renewed support for private enterprises like Alibaba signals a favorable policy environment. Price Action: BABA stock is down 1.28% at $133.90 premarket at last check Friday. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Also Read: In Geopolitical Chess, China's Latest Energy Norms Block Nvidia's Chip Strategy Amid US Sanctions Photo: Shutterstock BABAAlibaba Group Holding Ltd$133.39-1.65%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum95.77Growth73.63Quality54.63Value77.85Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Alibaba Stock Price in 5 Years: Jack Ma's Return Sparks Optimism for 200% Gains

Jack Ma's return sparks optimism for 200% gains. | Credit: Andrew Burton/Getty Images Alibaba is making aggressive moves in AI, leveraging domestic chips and advancing toward Artificial General Intelligence (AGI) while reshaping industries like automotive. With strategic partnerships and major infrastructure investments, the company is positioning itself for long-term growth. Meanwhile, Jack Ma's reappearance has sparked renewed confidence, hinting at a potential shift in China's business climate. Alibaba Expands AI Investments Alibaba is deepening its AI push, using domestic chips from Huawei and its semiconductor division to reduce AI development costs by 20%. Ant Group has already integrated these chips for AI training, achieving performance on par with Nvidia's H800. While still relying on Nvidia, Alibaba is prioritizing Chinese alternatives as U.S. export restrictions tighten. In the automotive sector, Alibaba's large language model, Qwen, will power BMW's in-car assistants, enhancing infotainment and driver support. The AI system is set to debut in China's 2026 BMW Neue Klasse models. The company is also pushing toward AGI, with CEO Eddie Wu calling it a "once-in-a-decade" opportunity. Its latest deep reasoning model, QwQ-32B, rivals DeepSeek R1, reinforcing China's growing influence in AI. With government support and investor enthusiasm, Alibaba's stock has jumped over 61% in 2025. The company plans to invest more than 380 billion yuan ($53 billion) in AI infrastructure over the next three years. Jack Ma's Return Fuels Optimism Jack Ma's reappearance at a high-profile meeting with President Xi Jinping and top business leaders has reignited speculation about China's approach to the private sector. Seated in the front row and shaking hands with Xi, Ma's presence signaled a possible thaw in Beijing's stance toward tech companies. His 2020 criticism of China's financial industry led to regulatory crackdowns that heavily impacted Alibaba and other firms. Following the event, Alibaba's stock surged, and optimism spread across China's tech sector. Analysts see Ma's return as a sign that Beijing may ease restrictions on private enterprises to stimulate economic growth. Still, some caution that Ma's limited media coverage and continued silence suggest his full rehabilitation remains uncertain. While regulatory pressures may be easing, significant policy shifts remain unclear. Revenue hit 280.2 billion yuan, slightly surpassing estimates. BABA shares have surged 61% this year, with U.S.-listed shares jumping 8% after the earnings release. Alibaba's Cloud Intelligence Group posted a 13% year-over-year revenue increase to 31.7 billion yuan, driven by AI-related growth. CEO Eddie Wu emphasized the company's aggressive AI expansion, noting that planned investments in cloud and AI infrastructure over the next three years will surpass the spending of the past decade. BABA Stock Price in 5 Years: How High Can It Go? Alibaba's stock has been on a strong run in 2025, rising 60% from $84.79 to $135.69. Over the past three months, 16 Wall Street analysts have set a 12-month price target of $165.61, with estimates ranging from $140 to $190 -- suggesting a potential 22% upside. Looking ahead, analysts forecast continued strong growth: With AI expansion, renewed investor confidence, and potential policy shifts in China, Alibaba appears poised for long-term growth -- if it can navigate evolving regulatory and market conditions.