Alibaba stock rises 9% after reports of AI collaboration with Apple
Alibaba shares climb 9.2% on AI expansion hopes
Alibaba Group’s stock has rebounded sharply, surging 46% from its 2025 low as investor optimism grows around its AI initiatives.
The rally, fueled by Alibaba’s AI push and reports of a partnership with Apple, has added nearly $87 billion to its market value, making it the best-performing Chinese tech stock this year, reports Bloomberg.
Key Takeaways
- Alibaba’s renewed focus on AI has driven a 46% surge in its share price, outperforming major Chinese tech peers and reversing its post-regulatory slump.
- The stock’s rally has added nearly $87 billion in market value, with gains accelerating after reports of a potential AI partnership with Apple in China.
- Investor enthusiasm for Chinese AI startups, particularly DeepSeek, has sparked a renewed rally in Chinese tech stocks, benefiting Alibaba as a key player.
AI Optimism Revives Alibaba’s Stock
Alibaba’s Hong Kong-listed shares have skyrocketed 46% since their 2025 low on January 13, significantly outperforming the Hang Seng Tech Index’s 25% gain. The surge marks a dramatic turnaround for the company, which had struggled in the wake of Beijing’s regulatory crackdown and a sluggish post-pandemic economy.
Alibaba Group Holdings Ltd (BABA) share price dynamics (Sep 2020 - Feb 2025) Source: TradingView
Now, Alibaba’s renewed focus on artificial intelligence has reignited investor interest, positioning it as a key player in China’s evolving AI landscape.
Market Value Soars on AI Collaboration Hopes
As of Wednesday’s close, Alibaba’s market capitalization has surged by nearly $87 billion, positioning it as the strongest performer among China’s tech giants. The momentum accelerated on Thursday when Alibaba’s shares spiked as much as 9.2% following reports from Chinese media outlet Yicai that the company was working with Apple to develop AI features in China.
While details of the collaboration remain scarce, the news reinforced investor confidence in Alibaba’s ability to leverage AI for future growth. The surge in Alibaba’s stock reflects growing enthusiasm for Chinese AI development, particularly as the company ramps up investment in artificial intelligence to compete with both domestic and global tech rivals.
DeepSeek’s AI Breakthrough Fuels Broader Tech Rally
Alibaba’s AI-fueled resurgence comes amid broader excitement in China’s tech sector, spurred by DeepSeek’s recent advancements in AI technology. DeepSeek’s innovations have triggered significant market interest, leading analysts to view Alibaba as one of the key beneficiaries of China’s AI boom.
“The emergence of DeepSeek has sparked a new AI-related catalyst for Chinese tech stocks,” said Andy Wong, investment and ESG director for Asia Pacific at Solomons Group. “Alibaba, with its established market position and AI ambitions, stands to benefit the most in the medium term.”
Alibaba’s impressive stock rally underscores growing confidence in its AI-driven future. While regulatory risks remain, its recent surge, AI investments, and potential Apple partnership signal a renewed phase of growth.
Reminder, Amazon shares fell 4% after the company announced plans to increase capital expenditures to over $100 billion in 2024, primarily to expand its artificial intelligence (AI) infrastructure.
