Alibaba rose 3.14% in pre-market trading, trading at $119.39/share. The rally was driven by a wave of AI announcements at the Yunqi Cloud Summit held in Hangzhou.

CEO Eddie Wu unveiled the Zhenmu V900 AI chip, developed by Alibaba's T-Head semiconductor unit, delivering 3x the computing power of its predecessor M890. A single cluster can support up to 500,000 chips for advanced AI model training and inference, with mass production slated for Q1 2027. Wu also announced plans to train models with 5 to 10 trillion parameters and set a target for Alibaba Cloud's global data center capacity to exceed 20 GW by 2032. Chairman Joe Tsai emphasized the company's commitment to a five-layer full-stack AI system spanning chips, cloud infrastructure, foundation models, model services, and agent applications.

Citi maintained a Buy rating with a HK$189 target, noting that the 20 GW infrastructure target could drive external cloud revenue to $160 billion by fiscal 2033. Morgan Stanley assigned an Overweight rating, projecting Alibaba Cloud's growth to surpass 50% in the next fiscal quarter.

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