In its research report, CICC pointed out that $BABA-W (09988.HK)$ At the Alibaba cloud computing conference, the management expressed a bullish view on the development of generative AI, believing that the digital world and the physical world will gradually be reshaped by AI, and autonomous driving and the robotics industry are important applications.

CICC stated that Alibaba Cloud is committed to realizing a comprehensive upgrade of the cloud computing system in the AI era and believes that it can compensate for supply shortfalls through technological innovations such as cloud multi-core. It can also demonstrate the value of leading cloud service providers. The bank also believes that the opportunities of generative AI are conducive to narrowing the gap between Alibaba Cloud and traditional cloud providers. Alibaba Cloud has competitive advantages in high-performance chip layout, software technology capability, algorithm applications, etc. Its forward-looking large-scale model technology research and development and leading the transformation of the cloud computing industry can exert the company's leading effect, driving the adoption of AI by enterprises and serving as an important driver for Alibaba Cloud's revenue growth acceleration. The bank maintains its "outperform industry" rating for the group and a target price of HK$109.