US Stock Market Move | It is claimed that Alibaba Group Holding Limited Sponsored ADR (BABA.US) will collaborate with Apple Inc. to develop AI functions for Chinese iPhone users. Its stock has risen over 2%.

On Tuesday, Alibaba Group Holding Limited Sponsored ADR (BABA.US) rose more than 2% in mid-trading, up 42% in the past month to $114.58. Apple Inc. (AAPL.US) also rose over 1% to $231.03. According to The Information, Apple Inc. and Alibaba Group Holding Limited Sponsored ADR are collaborating to develop AI features for Chinese iPhone users. Sources say that this move is part of Apple Inc.'s strategy to combat declining sales in China and provide more attractive software features. Apple Inc. has been testing various AI models from well-known Chinese developers since 2023, and last year selected Baidu Inc Sponsored ADR Class A as a main partner. Sources say that Apple Inc. has been considering other options in the past few months, evaluating models developed by Tencent, ByteDance, Alibaba Group Holding Limited Sponsored ADR, and Deepseek. In addition, Morgan Stanley strategist Tony Lee and others mentioned that artificial intelligence is entering a new stage, and its applications will drive the next wave of value creation, potentially benefiting China. The promotion of AI and relatively low valuations may lead Chinese tech stocks to outperform. They recommend buying a basket of stocks with significant exposure to AI applications and strong liquidity in the options market, including Alibaba Group Holding Limited Sponsored ADR.