Alibaba Group's stock (BABA-W) surged over 5% in Tuesday's intraday trading session, fueled by investor enthusiasm surrounding the company's artificial intelligence (AI) initiatives and potential partnership with Apple for AI services in China.
Alibaba's AI advancements, particularly in its cloud segment, have been driving revenue growth acceleration. The company's Cloud Intelligence Group saw a 7.1% year-over-year revenue increase in the second quarter of fiscal 2025, with its AI-related products maintaining triple-digit growth for five consecutive quarters.
Moreover, reports of a potential partnership between Alibaba and Apple for Apple Intelligence services on iPhones in China have further boosted investor sentiment. While details are expected at Apple's Intelligence Developer Event in China on March 24th, this collaboration could boost Alibaba's AI cloud services demand and help diversify its revenue mix.
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