Alibaba shares rose as much as 4.1% to over HK$173 (US$22.03) on September 29, making it the top performer on the Hang Seng Tech Index this month with a near 50% gain.

Analysts at Morningstar raised their fair value estimate for Alibaba’s US and Hong Kong shares by 49%, citing improved growth prospects for its cloud and AI businesses.

Morgan Stanley also increased its price target for Alibaba’s American Depositary Receipts by 21% to US$200 and expressed a more positive outlook on the company’s cloud unit after Alibaba announced a plan to boost AI spending and form a new partnership with Nvidia.

In its latest quarter, Alibaba reported strong growth in AI-related products and better-than-expected cloud sales.

Cathie Wood’s Ark Investment Management reopened positions in Alibaba’s US-listed shares this month after a four-year break.

Alibaba is on track for its best monthly performance since its 2019 Hong Kong listing, as investors bet on continued growth from its AI investments.

🔗 Source: Bloomberg

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