Staff Reporter
Alibaba Group’s Hong Kong shares surged to a three-year high on Friday, igniting a broader rally among major Chinese technology stocks. The e-commerce giant reported impressive earnings for the December quarter, fueling investor enthusiasm.
Alibaba (HK:9988) (NYSE:BABA) saw its stock rise by as much as 11%, reaching HK$133.90—its highest point since early 2022. This remarkable performance made it the top performer on the Hang Seng Index, contributing to an overall gain of over 2%.
The company’s revenue surpassed expectations for the December quarter, prompting plans to increase investments in its core e-commerce business and artificial intelligence. The rising demand for AI also boosted revenue from Alibaba Cloud, a key player in the company’s AI initiatives.
Alibaba announced its collaboration with Apple (NASDAQ:AAPL) to enhance AI features in iPhones sold in China.
A recent report from the Wall Street Journal revealed that GameStop Corp (NYSE:GME) CEO and billionaire investor Ryan Cohen has amassed a $1 billion stake in Alibaba in recent months.
Alibaba Fuels Rally in Chinese Tech Stocks
Alibaba’s recent gains have ignited a broader rally in Chinese technology stocks, driven by strong performance from the company’s cloud unit and heightened optimism about China’s AI capabilities.
Shares of Alibaba’s competitors, including Baidu Inc (NASDAQ:BIDU) (HK:9888) and Tencent Holdings Ltd (HK:0700), rose by 2% and 3.4%, respectively, while rival JD.com saw an increase of 2.6%.
Over the past month, China’s largest tech companies have recorded strong gains, particularly following the release of DeepSeek AI, which has spurred confidence that Chinese firms remain competitive in the AI landscape.
Alibaba stands out in this rally, as it is viewed as a leader in Chinese AI development. The company launched a new AI model in late January to leverage the popularity of DeepSeek and provides support for the AI on its cloud platform.
