Alibaba Group Holding’s stock leapt more than 18 per cent after reporting a surge in revenue from artificial intelligence (AI), underscoring the steady progress it’s making against rivals in a post-DeepSeek Chinese development frenzy.
China’s e-commerce leader posted a triple-digit percentage gain in AI-related product revenue as well as a better-than-anticipated 26 per cent jump in sales from the cloud division, the business most closely tied to the AI boom.
That helped assuage investors nervous about the fallout from a worsening battle with Meituan and JD.com in Internet commerce.
Its shares gained their most intraday since November 2022 in Hong Kong, after investors looked past a disappointing 2 per cent rise in revenue and a surprise decline in operating income.
Alibaba’s rally also helped energise the broader AI sphere: Ernie developer Baidu gained as much as 5.8 per cent, while Tencent Holdings climbed.
“Alibaba’s earnings underscore a bifurcation within China
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