<div id="readability-page-1"><p>Alibaba (BABA) stock is trading higher in premarket action after the company shared new details about its latest artificial intelligence model. Alibaba said its new reasoning-focused AI model, Qwen3-Max-Thinking, outperformed several rivals across key industry benchmarks. The model is part of the Qwen family of large language models developed by Alibaba Cloud.</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>The company said the gains came from &#34;scaling up model parameters&#34; and using more computing power during training. As a result, Qwen3-Max-Thinking showed better results in areas such as factual accuracy, reasoning, and following instructions.</p> <p>What likely caught investors' attention was Alibaba's comparison with global leaders. Alibaba said its AI model performed on par with Google's Gemini (GOOGL), OpenAI, and Anthropic models across 19 benchmarks.</p> <h2><strong>A Step Forward for Alibaba Cloud</strong></h2> <p>Alibaba said two changes helped improve the model's results. First, the model can use tools when needed, such as pulling information or running code. Second, the model can spend more time on harder questions, which helps improve answers.</p> <p>Using these features, Alibaba said Qwen3-Max-Thinking performed better than several rival models on tests such as GPQA Diamond, LiveCodeBench, and Humanity's Last Exam.</p> <p>The company did not link the update to near-term revenue. Still, the announcement puts more focus on <strong>Alibaba Cloud</strong>, which management views as a key long-term growth driver. In the latest quarter, cloud revenue rose about 34% from a year ago, making it one of the company's fastest-growing areas. This growth is helping Alibaba depend less on its core online retail business over time.</p> <h2><strong>Is BABA Stock a Buy, Hold, or Sell?</strong> </h2> <p>On TipRanks, BABA stock has a Strong Buy consensus rating based on 14 unanimous Buys. The average Alibaba price target of $203.09 implies 18.51% upside potential from current levels. BABA stock has surged nearly 90% over the past year.</p></div>

BABA

09988

KBAB

BABX

<p>Alibaba's stock (BABA) is up in premarket trading following the announcement of its new AI model, Qwen3-Max-Thinking, which outperformed competitors like Google's Gemini and OpenAI across 19 benchmarks. The model's improvements stem from enhanced computing power and the ability to utilize tools for better accuracy and reasoning. Alibaba Cloud's revenue grew 34% year-over-year, indicating a shift away from reliance on its retail business. Analysts rate BABA as a Strong Buy, with a price target suggesting an 18.51% upside potential.</p>

- Alibaba (BABA) stock rose in premarket trading following the announcement of its new AI model, Qwen3-Max-Thinking, which surpassed competitors in key benchmarks.  
- The model's improvements stemmed from scaling parameters and enhanced computing power, enabling better performance in reasoning and factual accuracy compared to models from Google, OpenAI, and Anthropic.  
- While the update does not directly correlate to immediate revenue gains, it highlights the growth potential of Alibaba Cloud, which saw a 34% revenue increase year-over-year, contributing to a shift away from reliance on its core online retail business.

Why Is Alibaba Stock (BABA) Up Today?