Alibaba Group (NYSE: BABA, HK:9988) surged in investor interest after Mizuho raised its price target on the Chinese tech giant’s U.S.-listed shares from $140 to $170, maintaining an “Outperform” rating. The bullish update positions Alibaba as one of Mizuho’s top picks among Asian internet stocks, driven largely by the company’s aggressive expansion into artificial intelligence.
Mizuho’s analysts highlighted Alibaba’s clear AI product roadmap and strong foundational tech, which includes the advanced Qwen model. According to the report, Qwen is already on par—or even ahead—of major global AI models, and is integrated across a wide range of Alibaba’s development tools, enhancing the capabilities of its cloud services.
The investment bank also sees Alibaba’s AI efforts significantly improving internal efficiency across its core businesses, especially e-commerce. A recent internal mandate at Alibaba reportedly requires all divisions to integrate AI into their workflows, with performance now evaluated based on AI adoption.
Alibaba has invested billions into AI since 2023 and is now considered a key player in China’s AI race. Its commitment is further reinforced by rising optimism in the broader Chinese AI sector, spurred by new breakthroughs like DeepSeek.
In addition to its AI initiatives, Alibaba stands to benefit from China’s latest stimulus measures, which aim to boost consumer spending and revive domestic demand. This could further lift its e-commerce division, one of its largest revenue drivers.
With a strong AI foundation, cloud expansion, and growing domestic tailwinds, Alibaba is positioned to deliver long-term growth—making it a top stock to watch in Asia’s tech sector.