0451 GMT - Alibaba is likely to benefit from wider AI adoption, according to Citi analysts in a research note. The e-commerce giant guided significantly stepped-up capital expenditures with the amount for the next three years to exceed total capital expenditures spent over the past 10 years, which could be around 300 billion yuan in total, Citi analysts say. "Being the Asia No. 1 and world No. 4 cloud service provider and having developed the proprietary foundation model Qwen family, we believe Alibaba is well-positioned to capture the influx demand of cloud computing service in the coming years," the analysts say. Still they note upside risks to the pace of cloud revenue acceleration and profitability improvement. They keep a buy rating on the shares and raise their target price to HK$166.00 from HK$137.00. Shares were last traded at HK$136.30. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
February 20, 2025 23:51 ET (04:51 GMT)
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