Alibaba's stock soars on cloud and AI product revenue boost
Alibaba's shares shot up nearly 15% on Monday, September 1, 2025—their biggest intraday gain since February in Hong Kong.
The surge comes after a huge spike in revenue from AI products and a strong 26% jump in cloud sales, reaching $4.66 billion.
Cloud growth offsets slow overall revenue
Cloud growth helped balance out Alibaba's slow overall revenue (up just 2%) and an unexpected dip in profits.
With AI products now making up over 20% of external sales, Alibaba is pulling ahead of rivals like JD.com and Meituan, who are struggling with shrinking profits due to tough competition.
Alibaba is investing $53 billion in AI infrastructure
Alibaba is investing $53 billion in AI infrastructure, including investments in AI chips and open-source language models like Qwen.
CEO Eddie Wu has called artificial general intelligence a top priority for the company.
Even with US export limits, Alibaba still holds a strong position in China's AI cloud market, which analysts say could help keep growth steady despite tighter margins.