--- title: "\"Large Firms\" CICC: Alibaba builds a full-stack AI layout, continues to be the top choice for Chinese internet" description: "The research report from China Merchants Securities International points out that Alibaba has built a full-stack AI layout, including infrastructure, models, and product application ecosystems. The re" type: "news" locale: "en" url: "https://longbridge.com/en/news/276866900.md" published_at: "2026-02-25T09:50:55.000Z" --- # "Large Firms" CICC: Alibaba builds a full-stack AI layout, continues to be the top choice for Chinese internet > The research report from China Merchants Securities International points out that Alibaba has built a full-stack AI layout, including infrastructure, models, and product application ecosystems. The report emphasizes Alibaba's advantages in computing power infrastructure, open-source ecosystem, product ecosystem, and cloud business, forecasting a year-on-year growth rate of 42% and 28% for net profit attributable to the parent company in the fiscal years 2027 and 2028. The target price for Alibaba's U.S. stocks is maintained at $204, the target price for H shares is HKD 198, with a rating of "Buy," and it is listed as a top choice in Chinese internet According to a research report by China Merchants Securities International, Alibaba-W (09988.HK) has built a full-stack AI layout consisting of a "underlying infrastructure - model - product application ecosystem," including three core sectors: Tongyi Qianwen, Alibaba Cloud, and Ping Tou Ge. The firm believes that the group's full-stack AI advantages are reflected in the following aspects. First, Ping Tou Ge has established a self-controllable computing power infrastructure, with the latest high-end AI chip Zhenwu 810E performance benchmarking against NVIDIA H20. Based on self-developed chips to develop models, it will effectively reduce unit costs through model optimization and resource utilization improvement. Second, the Tongyi model has built the world's largest open-source ecosystem, expanding user coverage and leading model capabilities. Third, it has a rich and complete product ecosystem that efficiently collaborates data - models - products. Fourth, the cloud business has a clear first-mover advantage, with domestic cloud market share rising to 36% as of the third quarter of last year, and the explosive demand for AI continues to drive growth in traditional cloud service sales. Overall, the firm expects the group's net profit attributable to the parent company to grow by 42% and 28% year-on-year in the fiscal years 2027 and 2028, respectively; it maintains a target price of $204 for Alibaba (BABA.US) in the U.S. stock market, a target price of HKD 198 for H shares, maintains an "overweight" rating, and continues to list it as a preferred choice in the Chinese internet sector ### Related Stocks - [00241.HK - ALI HEALTH](https://longbridge.com/en/quote/00241.HK.md) - [09988.HK - BABA-W](https://longbridge.com/en/quote/09988.HK.md) - [BABA.US - Alibaba](https://longbridge.com/en/quote/BABA.US.md) - [FINX.US - Global X Fintech](https://longbridge.com/en/quote/FINX.US.md) - [513770.CN - Hwabao CSI HK Equities Internet ETF](https://longbridge.com/en/quote/513770.CN.md) - [BABX.US - BABA 2x Long Daily ETF - GraniteShares](https://longbridge.com/en/quote/BABX.US.md) - [KWEB.US - Krne Csi China Internet](https://longbridge.com/en/quote/KWEB.US.md) - [159998.CN - Tianhong CSI Computer Theme ETF](https://longbridge.com/en/quote/159998.CN.md) - [512380.CN - Yinhua MSCI China A ETF](https://longbridge.com/en/quote/512380.CN.md) - [KBAB.US - KraneShares 2x Long BABA Daily ETF](https://longbridge.com/en/quote/KBAB.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Kimi’s Moonshot AI sees revenue surge, secures over $700 million in new funding | Kimi’s Moonshot AI has experienced a significant revenue surge, generating more revenue in the last 20 days than in all | [Link](https://longbridge.com/en/news/276690714.md) | | Ant Group’s Alipay AI Pay and AI Health App AQ Each Surpass 100 Million Users During CNY as AI Adoption Accelerates in China | Ant Group's Alipay AI Pay and AI Health App AQ each surpassed 100 million users during the 2026 Chinese New Year, reflec | [Link](https://longbridge.com/en/news/276585392.md) | | Alibaba pushes deeper into AI coding tools with low-cost access | Alibaba Group is intensifying its focus on AI coding tools, offering low-cost access to top AI models, including its own | [Link](https://longbridge.com/en/news/276879633.md) | | Moonshot AI targets US$12 billion valuation as revenue surges for Kimi models | Moonshot AI, a Chinese start-up, is targeting a valuation of up to US$12 billion after raising at least US$700 million i | [Link](https://longbridge.com/en/news/276298959.md) | | Legacy Financial Advisors Inc. 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