--- title: "Macquarie: Expects the price war in mainland China's cloud services to bottom out, optimistic about Alibaba-W's cloud combination transformation, with a target price of HKD 216" type: "News" locale: "en" url: "https://longbridge.com/en/news/279872414.md" description: "Macquarie released a research report, believing that Alibaba-W has an optimistic outlook in the cloud services sector, with a target price of HKD 216. The report pointed out that the price war in China's cloud services has bottomed out, and Alibaba Cloud will raise prices for AI computing and storage services in mid-April, which is expected to drive revenue growth in cloud business. Alibaba's revenue structure is shifting towards high-value PaaS and SaaS, and the establishment of a \"token center\" is an important milestone in its AI strategy" datetime: "2026-03-20T01:58:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279872414.md) - [en](https://longbridge.com/en/news/279872414.md) - [zh-HK](https://longbridge.com/zh-HK/news/279872414.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/279872414.md) | [繁體中文](https://longbridge.com/zh-HK/news/279872414.md) # Macquarie: Expects the price war in mainland China's cloud services to bottom out, optimistic about Alibaba-W's cloud combination transformation, with a target price of HKD 216 According to the Zhitong Finance APP, Macquarie has released a research report stating that it remains optimistic about Alibaba-W (09988) as a unique infrastructure investment target within its coverage. It has added Alibaba's H-shares to its Marquee Buy recommendation list. The target price for Hong Kong stocks is HKD 216, while the target price for Alibaba (BABA.US) in the U.S. stock market is USD 222.1. The report indicates that the "price war" era among Chinese cloud service providers seems to have bottomed out. Following similar actions taken by Tencent Cloud earlier, Alibaba Cloud officially announced on its website on March 18 that it would raise prices for its AI computing and storage services starting in mid-April. This move indicates that, with the explosive growth in global AI demand, the demand for cloud services continues to rise, while supply chain and hardware costs have significantly increased, leading to a substantial rise in prices. In an environment of constrained supply, the industry is undergoing widespread price adjustments. According to the announcement, Alibaba Cloud will implement a price increase of 5%-34% for T-Head Zhenwu 810E and related AI chip services, and approximately a 30% price increase for cloud file storage service CPFS. The firm expects that this price adjustment will begin to drive growth in average revenue per user for cloud business starting from the June quarter. Coupled with the surge in token demand and the adoption of enterprise AI, the firm believes that Alibaba Cloud will achieve outstanding revenue growth by the end of the fiscal year in March 2027. More importantly, despite market concerns about a significant decline in overall profit margins due to high capital expenditures and large language model training costs, the internal revenue structure changes within the cloud business remain favorable, with revenue gradually shifting from low-margin general IaaS to high-value PaaS and SaaS. Macquarie believes that the establishment of Alibaba's "token center" is an important milestone that fills a "missing piece" in the company's AI strategy. By integrating multiple applications and infrastructure units into a unified framework, the firm believes that Alibaba is actively eliminating the silo phenomenon that may have hindered its AI execution in the past ### Related Stocks - [BABA-W (09988.HK)](https://longbridge.com/en/quote/09988.HK.md) - [Alibaba Group Holding Limited (BABA.US)](https://longbridge.com/en/quote/BABA.US.md) - [GraniteShares 2x Long BABA Daily ETF (BABX.US)](https://longbridge.com/en/quote/BABX.US.md) - [Global X Cloud Computing ETF (CLOU.US)](https://longbridge.com/en/quote/CLOU.US.md) - [KraneShares 2x Long BABA Daily ETF (KBAB.US)](https://longbridge.com/en/quote/KBAB.US.md) ## Related News & Research - [Alibaba Reportedly Launches New AI Platform That Oversees Multiple Agents](https://longbridge.com/en/news/279412426.md) - [Baidu’s DuClaw AI Agent Platform Tests Enterprise Demand And Valuation Gap](https://longbridge.com/en/news/279118490.md) - [Alibaba has made 470,000 AI chips, admits they’re inferior and may always be](https://longbridge.com/en/news/279869327.md) - [From AI Fabs to Fintech: Four New Tools for Fast Narratives](https://longbridge.com/en/news/279800895.md) - [Alibaba Rises After Announcing AI Price Hike](https://longbridge.com/en/news/279558117.md)