Alibaba and Apple join hands, the season for sowing has arrived

Just saw a piece of news: The AI features for the Chinese version of Apple have completed filing, and Alibaba's Tongyi Qianwen will serve as the underlying AI capability, integrated into Apple Intelligence.

How strict Apple is in selecting suppliers is well-known in the industry. The fact that they ultimately chose Alibaba means the technical strength of Tongyi Qianwen doesn't need to be proven repeatedly.

To be honest, I was a bit disappointed with Alibaba's stock price a while ago.

Alibaba Cloud is clearly still growing rapidly, yet the stock price has consistently underperformed the broader market. It's quite frustrating to see the business getting better and better while the market shows little reaction.

But later, I realized that even the best companies can't escape cycles.

Alibaba Cloud's full-year revenue for FY2026 reached 158.132 billion yuan, a year-on-year increase of 34%; revenue from AI-related products has maintained triple-digit growth for 11 consecutive quarters.

This growth rate isn't bad, it's just that cloud computing is inherently a capital-intensive, long-cycle business. The early stages require continuous investment in servers, chips, and data centers, with significant capital expenditures, while profit realization is slower.

But its position is crucial.

Upstream investments in chips, storage, and computing power often need to be channeled through the cloud to ultimately become real commercial revenue for downstream enterprises and users.

Eddie Wu previously mentioned that Alibaba's capital expenditures over the next three years could far exceed 380 billion yuan. As long as the new capital expenditure data to be disclosed next month doesn't fall below market expectations, the market will eventually reprice Alibaba Cloud.

Right now, it's more like a sowing phase.

It's hard to judge short-term stock price fluctuations, and there's no need to compete with quantitative funds on reaction speed every day. If you can accept volatility, just buy a little slowly, don't max out your position all at once.

The seeds have been planted. What needs to be done next might just be to wait patiently.

The harvest won't appear immediately, but it's highly likely to come this season.

$Apple(AAPL.US) $Alibaba(BABA.US)