The Hong Kong shares of Alibaba soared 9% on Thursday and hit a 3-year peak, outperforming the broader market, as the Chinese tech giant's prospects were bolstered by its advancements in artificial intelligence (AI) and a potential partnership with Apple Inc. to roll out AI features for iPhone users in China.

Analysts raised their price targets on the stock. The reported partnership with Apple could boost Alibaba's cloud income, AI technology, and user engagement, according to analysts at HSBC.

Additionally, Alibaba's upgraded large language model Qwen2.5-Max demonstrated strong comprehensive performance and AI capability. Analysts at CGS International believe that Alibaba's AI capability, large commercial customers, and solid privacy policy give it a strong competitive advantage in the AI space. With the potential for improved cloud segment margins and lower capital expenditure, CGS International raised its target price for Alibaba.