<div id="readability-page-1"><div><div><p><strong>Alibaba Group Holding Limited </strong><span>BABA</span> <span>BABAF</span> jumped 6.35% to HK$152.40 ($19.58) on the Hong Kong Exchange on Thursday morning, extending its remarkable 83.95% year-to-date gains as investors reacted positively to the Chinese e-commerce giant’s aggressive artificial intelligence expansion strategy and $3.2 billion fundraising.</p><h2>$53 Billion AI Investment Fuels Growth Momentum</h2><p>The surge follows Alibaba’s announcement of a 380 billion yuan ($53 billion) three-year investment commitment in artificial intelligence and related technologies. The company’s Cloud Intelligence Group has already shown strong results, posting 26% revenue growth to $4.66 billion in the latest quarter.</p><p>Alibaba recently raised $3.2 billion through zero-coupon convertible bonds, with nearly 80% of proceeds earmarked for data center expansion and technology upgrades. The senior note, maturing September 15, 2032, converts into U.S.-listed shares.</p><h2>Chinese Tech Giants Push Chip Independence</h2><p>The rally gains momentum from reports that Alibaba has begun using internally designed chips to train AI models, reducing reliance on <strong>Nvidia Corp. </strong><span>NVDA</span> processors. According to The Information reported via Reuters, Alibaba has deployed its own chips for smaller AI models since early 2025, while competitor <strong>Baidu</strong> experiments with its Kunlun P800 chip for Ernie AI development.</p><p>Alibaba’s AI chip is now good enough to compete with Nvidia’s H20, The Information reported, citing three employees familiar with the technology. This shift represents a significant development in China’s AI landscape, where companies have traditionally depended on Nvidia’s processors.</p><h2>Cloud Market Leadership Strengthens Position</h2><p>China’s cloud infrastructure spending surged 16% year-over-year to $11.6 billion in first quarter of 2025, with Canalys projecting market growth from $40 billion in 2024 to $46 billion in 2025. Alibaba Cloud maintains its dominant 33% market share, ahead of <strong>Huawei Cloud</strong>‘s 18% and<strong> Tencent Holdings Ltd.</strong> <span>TCEHY</span> Cloud’s 10%.</p><p><strong>Benzinga’s Edge Stock Rankings </strong>show BABA maintaining a steady upward trend across short-, medium-, and long-term horizons, with further performance insights available here.</p><ul> <li><strong>Cathie Wood’s Ark Pivots: Sells Tempus AI After FDA Win, Loads Up On Amazon, Figma And This Trendy Crypto Stock</strong></li> </ul><p><em>Image via Shutterstock</em></p></div></div></div>

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<p>Alibaba's stock rose 6.35% to HK$152.40, driven by a $3.2 billion bond raise and a $53 billion investment in AI. The company is using its own chips to train AI models, reducing reliance on Nvidia. Alibaba Cloud leads the market with a 33% share, as China's cloud spending grows. The stock has gained 83.95% year-to-date, reflecting strong investor confidence in its AI strategy and growth momentum.</p>

- Alibaba Group Holding Limited's stock rose 6.35% to HK$152.40 ($19.58) on the Hong Kong Exchange, reflecting an 83.95% year-to-date gain due to its AI expansion strategy and a $3.2 billion fundraising effort.  
- The company announced a 380 billion yuan ($53 billion) investment in AI, with strong revenue growth reported by its Cloud Intelligence Group.  
- Alibaba is also reducing reliance on Nvidia by using its own chips for AI model training, contributing to its leadership in China's cloud market, which is projected to grow significantly.

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Alibaba Stock Pops 6% In Hong Kong As Homegrown AI Chips Rival Nvidia's H20, $3.2 Billion Bond Raise Fuels Rally