Alibaba Is Turning Into China’s Hottest AI Play
It’s up about 50% this month, the biggest gain in the Hang Seng Tech Index.
Alibaba has soared to the top of the leaderboard in Chinese tech this month, and the gains are rivaling even some AI plays in the US.
The stock has shot up 49% in Hong Kong this month, a bigger gain than any other stock in the Hang Seng Tech Index. In New York, where the depositary receipts trade under the BABA ticker, it’s soared 31%.
With the Internet giant planning to spend more than more than 380 billion yuan ($53 billion) on AI and inking a new partnership with Nvidia, investors are starting to see the stock as more than just an e-commerce company.
“I wouldn’t say there’s a ‘best AI stock,’ but Baba is the best parallel to the US hyperscalers,” said Xin-Yao Ng, a fund manager at Aberdeen Investments. “Among the large cloud players in China, they are also the most aggressive.”
Chinese investors have bought a combined HK$61 billion ($7.8 billion) of Alibaba shares, on a net basis, via trading links between the mainland and Hong Kong in September. That’s the most for any month so far this year.