Alibaba Soars 50% in September, Dominating Hang Seng Tech Index
Alibaba just delivered a September to remember—rocketing 50% while leaving the entire Hang Seng tech index in its dust.
The Unstoppable Climb
While traditional tech stocks wobbled, Alibaba cut through market noise with surgical precision. The 50% surge wasn't just impressive—it redefined what's possible in a single trading month.
Market Dominance Confirmed
Topping the Hang Seng tech index isn't for the faint-hearted. Alibaba didn't just participate in the rally—it orchestrated it, proving that when Chinese tech giants move, entire indices follow.
September's lesson? While Wall Street analysts were busy overcomparing price-to-earnings ratios, Alibaba was busy printing gains that would make most crypto pumps look conservative.
Cloud Growth Forecasts Raised to 40%
Gary Yu and his team at Morgan Stanley raised their cloud growth forecasts to 32% for fiscal 2026 and 40% for fiscal 2027. The analysts said the higher estimates reflect increased capital spending, model improvements, strategic partnerships, and faster expansion into international markets.
Alibaba’s Hong Kong-listed stock is on pace for its best month since the company went public there in 2019. Investors are backing the internet company’s AI investments as a way to drive growth. In the most recent quarter, the firm reported triple-digit growth in AI-related products. Its cloud division also delivered sales growth that exceeded expectations.
As Optimism builds, Cathie Wood’s Ark Investment Management reopened positions in Alibaba’s ADRs this month. It was the first time the firm bought the stock in four years buying $16 billion worth of Alibaba stock. Half of that amount went into the Ark Fintech Innovation ETF, while the rest went into the Ark Next Generation Internet ETF. It marked her first major purchase of the company since 2021.
Strategic Nvidia partnership to bypass U.S. Chip restrictions
As reported by Cryptopolitan earlier Alibaba’s global AI spending could reach $4 trillion over the next five years. Eddie said Alibaba needs to keep up with that pace or risk getting left behind.
Alibaba is now pursuing the same opportunity as Amazon, Microsoft, Alphabet, and Meta. Those companies are expected to spend $364 billion on AI next year, up from an earlier estimate of $325 billion.
The company also signed an agreement with Nvidia to use its training tools for robotics and self-driving vehicles. Financial terms weren’t disclosed, but the partnership carries weight. U.S. restrictions have made it harder for Chinese companies to purchase Nvidia’s chips, so Alibaba is finding ways around those limits.
Other Chinese firms are also developing domestic chips to replace American technology, including the processors used to train and operate large AI systems.
Eddie said the company wants to become a complete AI provider, which includes making its own chips. The cloud division already serves clients in the U.S. and Australia and is now expanding its reach.
New data centers are opening in Brazil, France, and the Netherlands. These facilities will support the next phase of Alibaba’s AI infrastructure. The company’s stock has climbed 110% in 2025.
Cloud revenue grew 26% year-over-year in the second quarter. Eddie identified AI, cloud, and e-commerce as the company’s three main growth drivers, with AI now taking the leading role.
Other companies are seeing similar effects from AI investments. Oracle is putting $35 billion into AI infrastructure for 2026, with that number expected to reach $65 billion by 2029. Thanks to new partnerships with OpenAI, Meta, and SoftBank, Oracle’s stock has surged, adding $390 billion in value this year.
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