Alibaba-W (09988) saw its share price climb as much as 4% during intraday trading, currently up 3.62% at HK$108.90 with a turnover of HK$3.262 billion. The surge comes as investor sentiment is buoyed by recent developments in the company's AI offerings and a bullish analyst note from JPMorgan.

On September 18, Alibaba's Qwen team launched the native full-modal model Qwen3.8-Omni-Flash, which supports four types of input—text, images, audio, and video—with a context length of 1 million tokens. The model natively supports continuous audio-video input of up to one hour. According to the official blog, the API price for hourly audio input has dropped by over 98%, while the audio-video input price has been reduced by more than 93%.

Guosheng Securities previously highlighted in a research report its positive outlook on Alibaba Cloud's business growth and the ongoing optimization of its profit structure, as well as Alibaba's full-stack AI layout. More recently, JPMorgan issued a research note assigning a target price of US$210 for Alibaba's US-listed shares (BABA.US) and HK$205 for its Hong Kong-listed shares (09988), with an "Overweight" rating.

Where investors might want to focus: The combination of aggressive AI model pricing cuts and a favorable analyst target could provide near-term momentum for the stock. However, market participants should monitor the actual adoption rate of the new Qwen model and the pace of cloud revenue growth to gauge whether the current valuation is justified.