Alibaba’s AI Strategy Gains Momentum with Key Partnerships and Analyst Backing

Alibaba Group is accelerating its artificial intelligence initiatives, receiving growing support from Wall Street analysts who are upgrading their outlooks for the Chinese technology leader. The company’s recent high-profile collaboration with the National Basketball Association and improving cloud revenue projections have positioned the stock for potential continued strength following its impressive year-to-date performance.

Financial institutions are increasingly optimistic about Alibaba’s strategic direction. Erste Group upgraded the company’s stock from “Hold” to “Buy,” specifically citing progress in its artificial intelligence development. In a significant projection, Morgan Stanley forecasts that cloud revenues will expand by 32% year-over-year in the second quarter of 2026, representing a notable acceleration compared to previous quarters. The analysis anticipates cloud margins maintaining stability within the 8-9% range.

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