News on January 14th indicated that$BABA-W (09988.HK)$Up over 4% again, with a cumulative increase of nearly 14% this week. As of the time of writing, it is trading at HKD 166.6, with a turnover of HKD 14.698 billion. US stocks$Alibaba (BABA.US)$rose more than 2% during after-hours trading.
In terms of news, at the previous Yunqi Conference in 2025, Alibaba Cloud's technical team disclosed changes made to its hardware infrastructure in response to new market demands. Liu Weiguang, Senior Vice President of the Intelligent Group and President of the Public Cloud Business Division, stated that in addition to enhancing model capabilities and full-stack AI capabilities, Alibaba Cloud is focusing on the AI-native market, China’s enterprise-level market, and aiming for globalization. Liu Weiguang emphasized: "Our goal is to capture eighty percent of the incremental AI cloud market in 2026."
CICC released a research report stating that Alibaba Cloud's Tongyi series models maintain global leadership through an open-source strategy. The group has significantly increased its capital expenditure budget while developing core proprietary hardware, supported by an infrastructure network spanning 29 regions and 92 availability zones globally, achieving relatively controllable and scalable deployment of computing power. It is currently forecasted that Alibaba Cloud’s revenue compound annual growth rate (CAGR) over the next three years could exceed 30%.
The report further noted that Alibaba Cloud’s overseas business prospects remain positive, currently serving over 220,000 companies expanding abroad and actively pursuing more international enterprise clients. CICC believes overseas operations are expected to become one of Alibaba Cloud's core growth drivers in the future, with significant room for profit margin improvement. Its profitability resilience is likely to surpass expectations, potentially pushing its profit margin above 15%.
Editor/Melody
