HK Stock Market Move | BABA-W(09988) opens high by nearly 8%, AI revenue expected to exceed 30 billion by the end of the year, AI capital expenditure to increase speed again

BABA-W (09988) opened nearly 8% higher, and as of the time of writing, it is up 7.76%, trading at HK$143.1 with a turnover of HK$12.8 billion. In terms of news, the latest performance data released by Alibaba shows that in the fourth quarter of the 2026 fiscal year, revenue was 243.38 billion yuan, a year-on-year growth of 3%; net profit was 25.476 billion yuan, a year-on-year growth of 106%. As of the end of the quarter on March 31, 2026, revenue for the Yunzhi Intelligence Group was 41.626 billion yuan, a year-on-year growth of 38%, and external commercial revenue growth accelerated to 40% year-on-year. This quarter, revenue from AI-related products reached 8.971 billion yuan, achieving triple-digit year-on-year growth for the 11th consecutive quarter, accounting for over 30% of external revenue for the first time. Alibaba executives mentioned in the financial report conference call that AI-related product revenue is expected to exceed 50% in the coming year, becoming the main driver of revenue growth for Alibaba Cloud. Wu Yongming revealed that there is hardly an empty card in Alibaba's servers now. He expects that in the quarter ending in June, the annual recurring revenue (ARR) of AI models and application services, including the Hundred Refinement MaaS platform, will exceed 10 billion yuan, and by the end of the year, it will exceed 30 billion yuan. Additionally, to meet the huge demand for AI, Alibaba stated that future capital expenditures will exceed the original plan of 380 billion yuan.