0455 GMT - Artificial intelligence could be a long-term growth driver for Alibaba, according to CGS International analyst Lei Yang in a research note. The Chinese tech giant said on Monday that it plans to invest more than $52 billion on AI and cloud computing over the next three years. CGS International expects Alibaba's AI-related capital expenditure to be mainly used on cloud infrastructure, its Qwen large language model and various AI-empowered applications. The broker sees potential for re-rating Alibaba's stocks if it can improve its monetization rate, while stabilizing its e-commerce market share alongside developing its AI and cloud businesses in fiscal 2026. CGS International reiterates its add rating for Alibaba, raising its target price to HK$170.00 from HK$133.00. Shares are last at HK$132.20. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 24, 2025 23:55 ET (04:55 GMT)
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