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US Stocks Movement | Alibaba (BABA.US) rises over 8% as company executives say AI investments are starting to show results

US Stocks Movement | Alibaba (BABA.US) rises over 8% as company executives say AI investments are starting to show results

智通财经智通财经2025/08/29 18:24
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By:智通财经

According to Jinse Finance APP, on Friday, Alibaba (BABA.US) opened with a surge of over 8%, marking its largest increase since March 5, closing at $130.22. In terms of news, the company’s Q2 fiscal revenue grew by 2% year-on-year, falling short of expectations, while net profit soared by 76% to 42.4 billion yuan, mainly due to gains from changes in the fair value of equity investments. Instant retail business revenue in the first half of 2025 increased by 12% year-on-year. Alibaba Cloud revenue grew by 26% year-on-year, and AI-related product revenue achieved triple-digit year-on-year growth for eight consecutive quarters. Capital expenditure surged from about 11.9 billion yuan in the same period last year to about 38.7 billion yuan this quarter.

During tonight’s conference call, Alibaba Group CEO Wu Yongming stated that Alibaba owns the world’s fourth largest and Asia’s leading cloud, and possesses full-stack technical capabilities from AI computing power, AI cloud platform, AI models, open-source ecosystem, to AI applications. This quarter, Alibaba’s Capex investment in AI+Cloud reached 38.6 billion yuan. Over the past four quarters, more than 100 billion yuan has been cumulatively invested in AI infrastructure and AI product R&D. Alibaba’s investment in AI has begun to show results, whether it is Alibaba Cloud’s rapid growth driven by customers’ AI needs, or the AI experience upgrades in a wide range of to C and to B scenarios, all demonstrating that the AI-driven path for Alibaba’s rapid growth is becoming increasingly clear.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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