Deepseek has completely ignited the fire of Alibaba (BABA.US), increasing its market value by nearly $100 billion dollars to become the protagonist in the restructuring of technology stocks.

After realizing that Deepseek is leading the re-evaluation of the value of Chinese tech stocks, Alibaba (BABA.US) has undoubtedly become the protagonist of this tech bull market. Wall Street's focus on Chinese tech companies has shifted from "risk" to "potential". Alibaba Group Holding Limited Sponsored ADR has emerged as the top-performing stock among large Chinese tech companies in the new year, surpassing competitors Tencent and JD.com, Inc. Sponsored ADR Class A. The company's stock on both the US and Hong Kong markets has recently surged, closing at 113.80 Hong Kong dollars as of yesterday. It has risen by 46% since hitting a low point in 2025 on January 13, expanding its market value by nearly $87 billion, surpassing the Hang Seng Tech Index's 25% increase during the same period. This also means that Alibaba Group Holding Limited Sponsored ADR's fate has unexpectedly reversed, as it had fallen out of favor with investors after facing policy challenges and a decline in business due to the impact of the COVID-19 pandemic. Behind the rise in stock price, optimism is held for Alibaba Group Holding Limited Sponsored ADR's efforts to develop its own artificial intelligence services and platforms. Following the release of technology by the Chinese AI startup DeepSeek, which caused a stir on Wall Street, Alibaba Group Holding Limited Sponsored ADR also gained attention. Alibaba Group Holding Limited Sponsored ADR's stock price was boosted again on Wednesday following reports that Apple Inc. (AAPL.US) is collaborating with the e-commerce pioneer to launch artificial intelligence features in China. Andy Wong, Asia-Pacific head of investments and ESG at Solomon Group, said, "The emergence of DeepSeek has sparked new catalysts related to artificial intelligence for Chinese tech stocks." "In this field, we believe that Alibaba Group Holding Limited Sponsored ADR's medium-term earnings growth prospects are more concrete and stable." Alibaba Group Holding Limited Sponsored ADR's rebound in 2025 marks the climax of a year in which Jack Ma's two oldest deputies, Joe Tsai and Eddie Wu, led a turnaround. These two chairmen and CEOs were senior members of the original founding team of Alibaba's Taobao, taking the helm in 2023 after years of regulatory scrutiny and a downturn during the post-pandemic period weakened its cloud computing and consumer businesses. The two leaders have steered the company back to basics, focusing on integrating and streamlining its core commerce businesses. They also decided to excel in the field of artificial intelligence. Since the introduction of ChatGPT, Alibaba Group Holding Limited Sponsored ADR has invested in a group of China's most promising startups, including Moonshot and Zhipu. In addition, the company has prioritized expanding its cloud business, supporting AI development, lowering prices significantly, in order to win back customers who had turned to competitors during turbulent times. It also decided to invest in AI, joining a competition led by Baidu Inc Sponsored ADR Class A at the time. These efforts have yielded preliminary results in January of this year. Benchmark tests released by Alibaba Group Holding Limited Sponsored ADR showed that in various tests, the Qwen 2.5 Max version scored higher than Meta Platforms Inc.'s Llama and DeepSeek's V3 model. The company is now considered a leader in the AI field, alongside Tencent, ByteDance Ltd., Minimax, Zhipu, and other startups. However, it is still early days. One key obstacle facing Chinese AI companies is the slow adoption of AI by domestic consumers and businesses, as well as a lack of willingness to pay for services. Morgan Stanley analyst Alex Yao wrote in a report, "Many hedge funds and long investors see AI as a potential turning point for Alibaba Group Holding Limited Sponsored ADR, with some expressing interest in understanding the valuation of Alibaba Group Holding Limited Sponsored ADR's cloud business and any benefits of large language models." "The AI narrative is seen as a potential driver for revaluation, but there are concerns about monetizing AI capabilities." Furthermore, so far the growth of cloud businesses in China's mega corporations has lagged behind their major American counterparts. Analysts estimate that Alibaba Group Holding Limited Sponsored ADR's cloud revenue in the quarter ending last December grew by 9.7% year-on-year, Baidu Inc Sponsored ADR Class A's cloud revenue grew by 7.7% year-on-year, while Amazon.com, Inc. and Microsoft Corporation saw increases of 19% and 31% in cloud revenue year-on-year respectively.gracias - thank youAlibaba Group Holding Limited Sponsored ADR is scheduled to announce its financial report next Thursday, expected to provide investors with a new opportunity to understand the company's progress in artificial intelligence models and the prospects for cloud services. Currently, derivative traders are increasing their bets. On Wednesday, the trading volume of Hong Kong options contracts soared to more than twice the 20-day average, reaching the highest level in over four months. Over 110,000 call contracts changed hands, while more than 74,000 put contracts were traded. The cost of hedging against downside risks for the next month has fallen to near the lowest level since November last year. Even after the recent rebound, the valuation of Alibaba Group Holding Limited Sponsored ADR remains attractive to some investors. The company's expected P/E ratio is 12.2 times, lower than the 5-year average of 14.6 times. Manish Bhargava, CEO of Straits Investment Management in Singapore, said, "Despite the rise in stock price, considering its growth potential and market position, Alibaba Group Holding Limited Sponsored ADR's stock price is still undervalued compared to its American tech peers." "The company is expanding its overseas market, which may reduce dependence on the domestic Chinese market and drive future growth." Alibaba Group Holding Limited Sponsored ADR opened with another gap up today, with the Hong Kong stock rising by 3.69% to 118 Hong Kong dollars and the US stock night trading up by 2.48% to 121.27 US dollars as of the time of writing.