Alibaba Group (BABA) posted an inflection point quarter as cloud operations were "much stronger" than expectations and its artificial intelligence strategy is moving into its next gear of growth, Wedbush said in a Thursday note.
The company is worth around $500 billion and could start to play a major part in expanding its growth ecosystem in the coming years with AI, analysts led by Daniel Ives wrote.
Apple (AAPL) and Alibaba will be "walking down the aisle" in the coming months with Apple Intelligence rolling out in China with Alibaba as the partner, the analysts said.
"While DeepSeek and other models have been the headline news we believe the true winners in this race within China will be Alibaba and Tencent," Wedbush said.
Shares of Alibaba were up 6.2% in recent Friday trading.
Price: 144.39, Change: +8.42, Percent Change: +6.19
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