Alibaba Shares Surge on AI and Cloud Growth Optimism

Alibaba Group Holding Limited saw its shares climb over 3% in pre-market trading as enthusiasm around its artificial intelligence initiatives and cloud growth bolstered investor sentiment. The stock ROSE to $177.66 in early pre-market trading, marking a 3.36% rebound.

Analysts at Morningstar raised their fair value estimate for Alibaba’s shares by nearly 50%, citing the company’s strengthened position in AI and cloud infrastructure. Morgan Stanley increased its price target for Alibaba American Depositary Receipts by 21% to $200, highlighting the firm’s expanding cloud capabilities and recent partnership with Nvidia.

Investor excitement around Alibaba’s AI investments has positioned the company as one of China’s leading AI enablers. The September rally represents the best monthly performance for Alibaba since 2019, driven by renewed confidence in its technological advancements.