"Alibaba Group Holding Ltd.'s stock leapt more than 19% after reporting a surge in revenue from AI, underscoring the steady headway it's making against rivals in a post-DeepSeek Chinese development frenzy. China's e-commerce leader posted a triple-digit percentage gain in AI-related product revenue as well as a better-than-anticipated 26% jump in sales from the cloud division-the business most closely tied to the artificial intelligence boom."
"That helped assuage investors nervous about the fallout from a worsening battle with Meituan and JD.com Inc. in internet commerce. Alibaba's shares gained their most intraday since November 2022 in Hong Kong, boosting the company's market value by more than $50 billion. Turnover in the stock marked a record high as of early afternoon. The rally helped energize the broader AI sphere: Ernie-developer Baidu Inc. gained as much as 5.8%, while Tencent Holdings Ltd. also climbed."
Alibaba's stock jumped more than 19% after reporting a surge in AI-related revenue and robust cloud growth. AI-related product revenue rose by a triple-digit percentage, while cloud sales increased 26%, driven by demand tied to artificial intelligence. The results eased investor concerns about a worsening competition with Meituan and JD.com, and lifted the company's market value by over $50 billion amid record trading turnover. The rally also boosted other AI-linked stocks such as Baidu and Tencent. Analysts noted a bifurcation in China tech: scalable AI growth versus cutthroat consumer-facing price competition. JD reported halved profit and Meituan warned of major losses, contributing to a recent market selloff.
Read at Fortune Asia
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