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Published on
March 6, 2025
5 min read
Alibaba’s Shares Surged as AI Boom Ignites Chinese Tech Stocks
The rise of AI in China is powering a move in the stock market as big technology companies witness a surge in investor interest. At the forefront of this trend is the surge in China’s AI stock, which is driven by the fast growth of AI tools and innovation in the industry.
According to Yahoo Finance, Alibaba saw the most surge in their shares on Thursday, March 6th, 2025, after revealing their latest open-sourced AI model. This new AI model uses a lot less data in comparison to the DeepSeek R1 model.
In the previous week, there were a lot of developments that took place in the Chinese tech market. Tencent’s AI surpassed DeepSeek as a preferred chatbot for iPhone.
Despite ongoing doubts over the long-term profitability of AI models, investor optimism is unwavering. Alibaba shares rose 8.4% in Hong Kong, propelling a Chinese tech gauge by 5.4% to its best closing level since 2021. Kuaishou posted an impressive 16% increase, its biggest in more than two years. Back in mainland China, Focus Technology Co., a maker of AI agent products, jumped by the 10% daily limit.
As China continues to invest heavily in artificial intelligence, companies like Alibaba are seeing unprecedented growth. Recently, Alibaba’s shares surged as investors reacted positively in the company’s latest AI development and strategic direction. In February of this year as well Alibaba’s shares surged amid speculations of the company’s partnership with Apple.
Alibaba’s Strong Earnings Report Fuels Growth
Alibaba’s latest earnings report showed better-than-expected financial performance, further increasing investor confidence. The firm posted robust revenue growth, with its cloud computing and AI businesses being key drivers of profitability.
Alibaba’s tech giant status is boosted by AI-enabled solutions such as in e-commerce and cloud services. Though, in the previous month, Alibaba’s $53 billion AI investment was seen as risk by the analysts.
Linda Lam, head of equity advisory North Asia at Union Bancaire Privee, “The supportive rhetoric to AI announced at the NPC sets a proper context for Chinese AI innovation to move forward. Looking ahead, we expect a proliferation of open-source AI applications from China and the US, to propel the tech rally globally.”
Alibaba Stock Performance Reflects China’s AI Ambitions
Alibaba’s recent stock performance is indicative of the wider effect of AI on China’s economy. With the nation driving for more technological autonomy and leadership in AI, corporations such as Alibaba have a lot to gain. The stock market hype around AI tools and breakthroughs reflects China’s drive to become a world AI leader.
The recent surge in China’s AI stocks showcases the increasing impact of artificial intelligence on the economy and stock market dynamics. Following a strong earnings report and advancements in AI, Alibaba’s shares have surged significantly.
As China emphasizes AI development, the performance of Alibaba’s earnings, share price, and stock reflects the wider opportunities arising in the tech industry. In the years ahead, we can expect more market enthusiasm as AI-driven innovations transform the financial landscape.
Ken Wong, an Asian equity portfolio specialist at Eastspring Investments, “We see a further re-rating happening in the market given how cheap a lot of the China tech stocks look compared to their US peers. Showcasing the enthusiasm is that even some hardware tech names which haven’t really performed earlier are going up.”
