Morgan Stanley: Alibaba has replaced Tencent as the preferred target, complete AI technology stack constitutes structural advantage.

Morgan Stanley has upgraded Alibaba to its top target, replacing Tencent. They stated that although Alibaba's short-term profits are under pressure, its control of the full-stack AI constitutes a structural advantage. Analysts such as Gary Yu pointed out in the report that Alibaba has top-tier self-developed AI chips, the leading cloud infrastructure provider in China and the fourth globally, the most widely adopted cutting-edge open-source basic models worldwide, and consumer-centric applications. Morgan Stanley forecasts that the total potential market for AI chips in China will reach $67 billion by 2030, with a domestic self-sufficiency rate of 76%.