Why Alibaba is flying high on the stock market
Alibaba's Hong Kong shares jumped a huge 52% in September, making it the top performer on China's Hang Seng Tech Index.
The big reason? Investors are excited about Alibaba doubling down on AI, including teaming up with NVIDIA and pouring more money into tech.
This comes after a rough patch, especially with tough competition in food delivery.
AI push and cloud tech boost
Analysts say Alibaba is quickly becoming a major player in AI and cloud tech.
Jian Shi Cortesi from GAM Investment Management points to their AI push as a key reason for renewed hype, while Morgan Stanley even called them "the best AI enabler in China."
Despite some investors betting against its US shares, Alibaba still looks like a good deal compared to Amazon or Microsoft.
Plus, it attracted the biggest cash inflow from mainland investors this year and is outspending Tencent and Baidu on AI—showing they're serious about leading the next wave of tech.