On Wednesday, Alibaba (BABA.US) rose over 2%, trading at $166.10. In a latest report, Goldman Sachs stated that full-stack cloud providers represented by Alibaba are embracing new growth opportunities, benefiting from enterprises' accelerated adoption of large models and sustained strong computing demand. Goldman Sachs believes that Alibaba is well-positioned with its leading model capabilities, 47% market share in China's public cloud market, and diversified chip supply, while also having room for international expansion. Based on optimistic industry outlook, Goldman Sachs raised Alibaba's target price from $163 to $179, maintaining a "buy" rating. Goldman Sachs specifically increased its valuation of Alibaba Cloud from $36 per ADS share to $43, and raised growth expectations for Alibaba Cloud in the second to fourth quarters of fiscal year 2026. Goldman Sachs analysts emphasized that Chinese cloud providers have made progress in self-developed inference chips and adopted a "multi-chip strategy," meaning that China's AI cloud industry growth "is no longer solely dependent on overseas chip supply." This transformation, combined with strong capital expenditure prospects, brings compound growth potential to the industry.