--- title: "From RMB 7.6 Billion to RMB 160 Billion! Alibaba \"Wins Big\" with CXMT Investment" type: "News" locale: "en" url: "https://longbridge.com/en/news/293985329.md" description: "With CXMT listing on the STAR Market, Alibaba's unrealized gains on its holdings exceed RMB 160 billion. This investment represents not only financial returns but also reflects Alibaba's strategic layout in the integrated computing and storage sector for AI, covering chips, large language models, and embodied intelligence" datetime: "2026-07-27T23:58:38.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293985329.md) - [en](https://longbridge.com/en/news/293985329.md) - [zh-HK](https://longbridge.com/zh-HK/news/293985329.md) --- # From RMB 7.6 Billion to RMB 160 Billion! Alibaba "Wins Big" with CXMT Investment On July 27, the highly anticipated CXMT listed on the STAR Market. On that day, CXMT closed at RMB 49 per share, a surge of 465.82% from its issue price of RMB 8.66 per share. Its market capitalization reached RMB 3.28 trillion, making it the company with the highest market cap in the A-share market. According to CXMT's prospectus, Alibaba Group holds nearly 5% of CXMT's shares through two entities, Alibaba Cloud and Alibaba Network, with a cumulative investment of approximately RMB 7.6 billion across two rounds. Meanwhile, Alibaba Cloud is the sixth-largest shareholder of CXMT and was the largest industrial investor in the final round before its IPO. CXMT successfully listed and issued 10% new shares; consequently, Alibaba's shareholding in CXMT was diluted to approximately 4.48%. In other words, based on CXMT's latest closing market capitalization on July 27, the value of Alibaba's equity stake exceeds RMB 170 billion, with unrealized gains exceeding RMB 160 billion. From RMB 7.6 billion to RMB 160 billion, this unrealized gain of over 21 times underscores Alibaba's continuous layout in the AI sector. The prospectus shows that CXMT is a leading domestic enterprise integrating DRAM research and development, design, and manufacturing. Its downstream end-customers include top-tier companies in various fields such as Alibaba Cloud, and its DRAM products are widely used in servers and other areas. According to the "China Hybrid Cloud/Private Cloud Market Insights, 2025H2" report released by International Data Corporation (IDC), Alibaba Cloud ranks first in market share for hybrid cloud infrastructure system software, platform software, and services in China, with the highest growth rate. Therefore, Alibaba's strategic investment in CXMT is not merely a financial investment but also carries the implication of collaborating across the industrial chain for "integrated computing and storage." In recent years, Alibaba has continuously strengthened its layout in AI. At the chip level, Alibaba has successively invested in companies such as Montage Technology, ASR Microelectronics, Lightelligence, and Hanbo Semiconductor. In the large model industry, it has invested in three leading large model companies: Zhipu AI, MiniMax, and Moonshot AI. In the video generation field, Alibaba has invested in Shishi Technology, Kling AI, Shengshu Technology, and VAST. Additionally, Alibaba has invested in embodied intelligence companies such as Xingdong Jiyuan, Unitree Robotics, Sudo Technology, Yuanli Lingji, Variable Robots, and Sharpa. From memory chips and large models to the application layer, Alibaba's diversified layout not only supports the invested companies but also enriches its own investment ecosystem. In recent years, Alibaba's investment logic has changed. In 2025, Alibaba sold Intime Retail and Sun Art Retail, and reduced its stakes in companies such as Enlight Media. At the same time, Alibaba adheres to the principle of "investing early, investing small, and investing in frontier technologies" on the investment front, with its series of AI investments reflecting Alibaba's forward-looking vision. Alibaba has currently formed a full-stack AI capability layout of "Tongyi Large Models + Alibaba Cloud Computing + T-Head Semiconductor," giving it the potential to compete with global tech giants like Google at the underlying infrastructure level. Previous data showed that Alibaba's net profit attributable to shareholders in a single fiscal quarter is typically around RMB 15 billion to RMB 26 billion. The current gain of over RMB 160 billion directly brought by CXMT is expected to be included in Alibaba's quarterly profits ending September 2026. This means that in the next fiscal quarter, Alibaba's profits will far exceed those of any previous quarter. And the profitability does not stop there. Currently, Nomura Securities has given CXMT a "Buy" rating, with a target price of RMB 116 per share, representing an upside of more than 12 times from the issue price, corresponding to a target market capitalization of RMB 7.76 trillion. Industry insiders believe that through the dual binding of shareholding and cooperation, Alibaba has not only ensured the supply chain security of its core business and provided tangible support for the development of domestic high-end chips, but also demonstrated its long-term patience as a tech giant. Risk Warning and Disclaimer The market involves risks, and investment should be made with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investors bear full responsibility for their own decisions. ### Related Stocks - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [KBAB.US](https://longbridge.com/en/quote/KBAB.US.md) - [BABX.US](https://longbridge.com/en/quote/BABX.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) - [BBYY.US](https://longbridge.com/en/quote/BBYY.US.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [688825.CN](https://longbridge.com/en/quote/688825.CN.md) - [688008.CN](https://longbridge.com/en/quote/688008.CN.md) - [688220.CN](https://longbridge.com/en/quote/688220.CN.md) - [00100.HK](https://longbridge.com/en/quote/00100.HK.md) - [300251.CN](https://longbridge.com/en/quote/300251.CN.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [89988.HK](https://longbridge.com/en/quote/89988.HK.md) - [HBBD.SG](https://longbridge.com/en/quote/HBBD.SG.md) - [06809.HK](https://longbridge.com/en/quote/06809.HK.md) ## Related News & Research - [How to Play BABA Stock as Alibaba Unveils New Qwen AI Model](https://longbridge.com/en/news/293494011.md) - [Alibaba reportedly tests standalone Qwen Office product](https://longbridge.com/en/news/293707248.md) - [China says it has expressed its strong dissatisfaction to EU over AliExpress fine](https://longbridge.com/en/news/293431667.md) - [Alibaba adds more agentic AI to B2B sourcing](https://longbridge.com/en/news/293797854.md) - [China considers tighter export controls on AI models and chips, FT reports](https://longbridge.com/en/news/293287358.md)