Chinese investors have shown a strong preference for Alibaba Group Holding Ltd., pouring a staggering HK$13.5 billion ($1.7 billion) into the company’s shares last week through mainland-Hong Kong trading links. This surge, which outpaced all other stocks, marks the highest weekly net purchases in recent months and is on track to become the largest monthly inflow since April.

The renewed interest in Alibaba is fueled by growing optimism around its artificial intelligence (AI) potential. The e-commerce giant reported a significant boost in AI-related revenue for the June quarter, helping to offset concerns over heavy investments in food delivery services. This momentum has propelled Alibaba to the top of the Hang Seng Tech Index, with its stock climbing 18% this month.

On Monday, Alibaba’s Hong Kong-listed shares jumped as much as 4.17% following two major announcements: the launch of an upgraded open-source AI model and the company’s co-leadership in a funding round for a robotics startup. These moves further reinforced investor confidence in Alibaba’s AI ambitions and long-term growth prospects.

Wall Street analysts are also taking a more bullish stance. Since the company’s latest earnings release, at least 20 analysts have raised their price targets, with Bloomberg data showing an average projection of HK$160.18 within the next year—a potential 17% upside from Friday’s close.

Together, the surge in investor inflows, upbeat earnings, and heightened analyst optimism underscore Alibaba’s growing prominence in the AI sector and its ability to drive future growth in China’s competitive tech landscape.