---
title: "Daiwa Gains Stronger Confidence in BABA-W Cloud Revenue Outlook, Reiterates Buy Rating"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/300372457.md"
description: "Daiwa Securities reaffirms its Buy rating on Alibaba (BABA-W) with a HKD180 target price, citing strong confidence in the company's cloud revenue outlook and AI monetization path. Despite lowering FY2027-29 EPS forecasts by ~4% due to equity financing dilution, Daiwa views Alibaba as a sector top pick. The broker highlights Alibaba's aggressive AI infrastructure investments, including plans for Qwen models with 5-10T parameters and new Zhenwu V900 chips, estimating cumulative capex of RMB2.1 trillion through 2032."
datetime: "2026-09-29T02:50:10.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/300372457.md)
  - [en](https://longbridge.com/en/news/300372457.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/300372457.md)
generator: "portal-rs"
---

# Daiwa Gains Stronger Confidence in BABA-W Cloud Revenue Outlook, Reiterates Buy Rating

After attending BABA-W (09988.HK) -1.800 (-1.671%) Short selling $857.04M; Ratio 17.594% 's Apsara Conference 2026, Daiwa gained stronger confidence in the company's cloud revenue outlook, although a more aggressive cloud infrastructure plan brings financing uncertainties. Alibaba remains the broker's sector top pick, thanks to a solid cloud business outlook and a clear monetization path for artificial intelligence across China's internet sector.

AI infrastructure remains a key long-term investment focus for Alibaba. The company reiterated continued investments in AI models, chips and cloud infrastructure, with plans to expand future Qwen models to 5-10T parameters and increase the global data center capacity operated by Alibaba Cloud to over 20 gigawatts by 2032. 

The company also launched its next-generation AI chip Zhenwu V900, with performance 3x that of the M890, and plans to launch it in 1Q27, followed by the J900 targeted for launch in 3Q28. The broker estimated cumulative capital expenditure for 2025-32 could reach around RMB2.1 trillion, supporting cloud revenue to reach around RMB1.1 trillion in FY2033.

Due to recent dilution from equity financing, the broker lowered its FY2027-29 EPS forecasts for Alibaba by around 4%, reiterated its Buy rating and maintained its TP at HKD180.  
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-28 16:25.)

### Related Stocks

- [BABC.US](https://longbridge.com/en/quote/BABC.US.md)
- [BABO.US](https://longbridge.com/en/quote/BABO.US.md)
- [BABU.US](https://longbridge.com/en/quote/BABU.US.md)
- [BABW.US](https://longbridge.com/en/quote/BABW.US.md)
- [BABX.US](https://longbridge.com/en/quote/BABX.US.md)
- [BBYY.US](https://longbridge.com/en/quote/BBYY.US.md)
- [KBAB.US](https://longbridge.com/en/quote/KBAB.US.md)
- [HBBD.SG](https://longbridge.com/en/quote/HBBD.SG.md)
- [89988.HK](https://longbridge.com/en/quote/89988.HK.md)
- [09988.HK](https://longbridge.com/en/quote/09988.HK.md)
- [8601.JP](https://longbridge.com/en/quote/8601.JP.md)
- [BABA.US](https://longbridge.com/en/quote/BABA.US.md)

## Related News & Research

- [Alibaba (NYSE:BABA) Ties Up With The Nets As Chip Access May Open Up](https://longbridge.com/en/news/300563656.md)
- [Alibaba Holds Flat as 10-Trillion-Parameter Ambition Tests Power](https://longbridge.com/en/news/300331395.md)
- [BREAKINGVIEWS-Chinese labs are wild cards in AI governance](https://longbridge.com/en/news/300510450.md)
- [Alibaba Chief People Officer Sold Shares Worth Over $11M](https://longbridge.com/en/news/300780144.md)
- [BOCI Trims BABA-W TP to HKD166, Keeps Buy Rating](https://longbridge.com/en/news/300401620.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**