Alibaba-listed stocks rose more than 14% on Friday due to the launch of AI Model DeepSeek.
Alibaba's stock has been in momentum the next day as it rose 10% behind analysts' estimates of third-quarter revenue.
The Chinese e-commerce giant's plan to invest in e-commerce and artificial intelligence has also boosted investor sentiment.
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The tech giant's share price has risen more than 70% so far this year and has grown nearly 90% in the past 12 months. Friday's rally helped Alibaba stock reach its highest level in more than three years
Overnight, the Chinese e-commerce giant's stock rose 8% since September last year after revenue disclosure.
“As the company's cloud business is much stronger than the streets, Alibaba provides a turning point quarter, with the Chinese AI strategy entering its next growth gear,” said Daniel Ives, an analyst at Wedbush Securities. ”
The Wall Street Journal also Report Billionaire investor Ryan Cohen increased his personal stake in Alibaba to about $1 billion on Thursday.
“We don't think Cohen's bet on Alibaba is becoming clearer, because this may be one of the winners of China's AI arms race,” Ives said.
Including Alibaba co-founder Jack Ma At a meeting of private business leaders The photos of the handshake with XI this month, hosted by Chinese President Xi Jinping, also boosted investors' confidence in Alibaba.
Important week for Chinese technology stocks
Meanwhile, Alibaba is not riding the AI wave alone, while the Chinese technology stocks listed in Hong Kong continue to have a fierce rally triggered by the launch of DeepSeek.
The best single-day growth since October, the Hang Seng Tech index rose 6.5% on Friday, reaching its highest level in three years.
Friday's earnings help index cement was the longest winning streak per week since May 2020.
Apart from Alibaba, the highest champion in the index is Lenovo, which grew by more than 15% after quarterly results, reaching a ten-year high Crushed Estimates.
Smartphone and electric car maker Xiaomi also scored 5.2% to set a record.
The ongoing rally stems from China's AI advancement and broader regulatory optimism. DeepSeek released last month Reigniting global investors' interest in China And prompts funds to rotate to industries that still have relatively cheap valuations.
Investors also bet that a symposium with the country’s largest technology leader and the country’s largest technology leader is a sign of policy turnaround after years of crackdown on the industry.
“There are more valuation discounts to narrow down more,” HSBC analysts said in a note.
James Cook, director of emerging market investment at Federated Hermes, said China's technology rally helped the country's onshore and offshore stock markets increase by more than $1.3 trillion, displaced investments in India and entered China.
Hermes added that after the disappearance, Chinese companies are quickly catching up with global AI Frenzy.
“Ten Years Opportunity”
Alibaba CEO Eddie Wu also appreciated this view, speaking with analysts, saying, “AI is an opportunity for industry transformation, only happening every few decades. ”
He said that in the next three years, Alibaba will invest more in AI and cloud computing in the next three years. However, he did not propose a exact figure on the amount of investment.
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“When it comes to Alibaba's AI strategy… our goal is to continue to develop models that extend intelligence boundaries,” Wu said, adding that AI could ultimately “have a significant impact on 50% of global GDP or even replace 50%.
“Alibaba has already seated on the AI Juggernaut and is now reaping rewards,” said Susannah Streeter, head of currency and markets at Hargreaves Lansdown.
Alibaba said it is working with Apple to consolidate its foothold in a market where local rival DeepSeek is causing a wave with a cost-effective model, with its iPhone sold in China with its AI solutions.
- Reuters, and other editors and inputs from Vishakha Saxena
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