TLDRs:
- Alibaba shares surged 43% in September as China investors bet heavily on AI and cloud expansion.
- Mainland buyers pumped HK$61 billion into Alibaba stock, marking the highest inflow this year.
- Alibaba Cloud to open data centers in eight countries, signaling global AI infrastructure ambitions.
- Analysts now view Alibaba as a leading AI and cloud player, beyond its ecommerce roots.
Alibaba’s Hong Kong-listed shares experienced a dramatic 43% increase in September 2025, the strongest performance on the Hang Seng Tech Index.
Market analysts attribute the surge to China investors’ enthusiastic response to the company’s accelerated push into artificial intelligence (AI) and cloud computing.
Mainland investors alone purchased HK$61 billion (US$7.8 billion) worth of Alibaba stock in September, marking the largest monthly inflow of the year and reinforcing Alibaba’s status as a top-performing Chinese tech stock.
The rally also reflected heightened bullish activity in options trading, with rising bets on further stock gains. At the same time, short interest in Alibaba’s U.S.-listed shares reached 6.8%, a five-year peak, highlighting market confidence in the company’s strategic direction.
AI and Nvidia Partnership Boost Confidence
Alibaba’s ambitious AI initiatives have been a central driver of investor optimism. The company recently announced a major partnership with Nvidia, aimed at enhancing its AI infrastructure and expanding cloud capabilities.
CEO Eddie Wu confirmed plans to increase investment in AI development, reaffirming a commitment to spend over 380 billion yuan (US$53 billion) on AI models and infrastructure by 2027.
This focus on AI extends beyond incremental improvements. Notably, Alibaba is pursuing the development of artificial general intelligence (AGI), positioning itself at the forefront of the technology. Investors interpreted these moves as a signal that Alibaba is transitioning from a primarily e-commerce company into a global AI and cloud powerhouse.
Global Cloud Expansion Underway
Alibaba Cloud, the company’s cloud computing arm, is actively expanding its international footprint. At the Apsara Conference 2025, Alibaba announced plans to open new data centers in Brazil, France, and the Netherlands, with additional sites in Mexico, Japan, South Korea, Malaysia, and Dubai slated for next year.
To support these operations, new regional service centers will be established in Indonesia and Germany, further strengthening global service capabilities.
Alibaba Cloud currently operates 91 availability zones across 29 regions worldwide and recently launched the AI Catalyst Program, offering select global AI companies access to advanced tools and up to US$120,000 in cloud credits. These initiatives reinforce Alibaba’s ambition to dominate both AI and cloud markets globally.
Analysts Reframe Alibaba’s Identity
Analysts are now redefining Alibaba’s market identity. No longer just an e-commerce giant, Alibaba is increasingly recognized as a leading AI and cloud infrastructure company. The cloud arm reported a 26% increase in sales last quarter, marking the fastest growth among all business units, while AI products saw triple-digit growth.
“This transformation shows Alibaba is reshaping its future around AI and cloud technologies, rather than relying solely on e-commerce,” said one industry analyst.
With sustained investment and international expansion, the company appears poised to maintain strong momentum in China and beyond, attracting both retail and institutional investors alike.
