Alibaba Shares Surge 43% as Investors Bet on AI and Cloud Expansion

Alibaba's Hong Kong-listed shares soared 43% in September 2025, marking their strongest performance on the Hang Seng Tech Index. The rally was fueled by mainland investors, who pumped HK$61 billion into the stock—the largest monthly inflow this year.

The company's aggressive push into artificial intelligence and cloud computing has reshaped its market perception. Analysts now view Alibaba as a leading AI infrastructure player, beyond its e-commerce roots. Its cloud division plans to open data centers in eight countries, signaling global ambitions.

Options trading activity turned increasingly bullish during the rally, while short interest in Alibaba's U.S. listings hit a five-year high of 6.8%. This paradoxical positioning reflects both speculative interest and long-term confidence in the tech giant's strategic pivot.