Alibaba’s AI-Driven Rally Lifts Chinese Tech Sector
Alibaba’s Q1 FY26 earnings report sent shockwaves through the market, with shares surging 19% on triple-digit AI revenue growth and a 26% cloud sales jump. The $50 billion market cap gain reignited Optimism for Chinese tech stocks, pulling peers like Baidu and Tencent higher.
Morgan Stanley dubbed Alibaba 'China’s best AI enabler thesis,' highlighting its cloud dominance as a structural advantage. Record turnover in Hong Kong signaled renewed institutional interest in the sector after months of stagnation.
While e-commerce growth slows, Alibaba’s pivot toward AI infrastructure demonstrates tech giants’ strategic shift beyond consumer platforms. The rally’s sustainability hinges on whether cloud and AI monetization can offset retail headwinds.
