Alibaba Stock Surges on AI and Cloud Growth, Analysts Predict 40% Upside

Alibaba''s stock (BABA) has rallied 42% year-to-date, fueled by aggressive investments in AI and cloud infrastructure. The Chinese tech giant plans to deploy $52.4 billion over three years to expand computing capacity, with Bridgewater Associates increasing its stake as a vote of confidence.

Q4 earnings revealed 18% cloud revenue growth to RMB30.1 billion, driven by triple-digit AI product sales growth for seven consecutive quarters. While overall results slightly missed estimates, Taobao and Tmall Group showed resilience in customer management services.

Wall Street sees nearly 40% upside potential as Alibaba positions itself at the intersection of e-commerce and enterprise AI solutions. The company''s sustained R&D spending contrasts with Western tech firms'' recent cost-cutting measures, signaling long-term conviction in technological leadership.