CICC's research report stated that Alibaba (09988.HK) management expressed bullishness on the development of generative AI at the Alibaba Cloud Habitat Conference, believing that the digital world and the physical world will gradually be reshaped by AI, and the autonomous driving and robotics industry are important applications.

CICC believes that Alibaba Cloud is committed to achieving a comprehensive upgrade of the cloud computing system in the AI era, and believes that it can compensate for the supply shortage through technological innovations such as "one cloud, multiple cores," and further demonstrate the value of leading cloud vendors. The bank also believes that the opportunities for generative AI are favorable for widening the gap between Alibaba Cloud and traditional cloud vendors. Alibaba Cloud has competitive advantages in high-level computing chips layout, software technology capabilities, algorithm applications, etc. The forward-looking development of large-scale model technology and leading the transformation of the cloud computing industry can play a leading role in driving companies to embrace AI and also serve as an important driving force for the growth recovery of Alibaba Cloud.

The bank maintains its "outperform" rating and a target price of 109 yuan for the group.