Alibaba gains $250 billion in AI-driven rally
Alibaba has added about $250 billion in market value amid surging interest in AI. Portfolio managers say the advance could continue even though the shares remain well below previous highs.
Alibaba’s shares are among the biggest beneficiaries of China’s AI trade. With demand rising for cloud and AI services, the company is cementing its role as a key player in China’s AI push, stoking FOMO among institutional investors.
In 2025, Alibaba’s market capitalization has climbed by roughly a quarter‑trillion dollars. Part of the rally reflects local and global funds seeking alternatives to pricey US hyperscalers. Additional momentum is coming from AI‑powered services across the ecosystem, including its cloud platform for robot training and consumer products, alongside increased usage during China’s national holidays.
The company has stepped up capital spending on cloud infrastructure and AI models, expanded enterprise and mass‑market solutions, and launched a potential GPT rival – the Qwen3‑Max application.
As appetite for Chinese tech improves, some investors are rotating capital out of overheated US stories into lower‑valuation Chinese assets. Given its scale and AI product breadth, Alibaba is viewed as a prime beneficiary of that shift.
Fund managers say Alibaba has become a poster child for China’s ambitions in generative AI. Still, policy and regulatory uncertainty at home and abroad persists, while reliance on advanced chip supplies and global AI competition could temper the growth in domestic demand.
Bottom line: Alibaba has re‑emerged as a flagship China AI story and the rally is feeding investor FOMO. Its durability will hinge on how quickly the company converts heavy AI investment into predictable cash flow and share gains across cloud and AI services.
