Citigroup: Alibaba is listed as the top choice for AI investment in China, with a target price of HK$204 for Hong Kong stocks.

Citigroup released a research report stating that Alibaba's subsidiary Alibaba Cloud has vertically integrated artificial intelligence full-stack capabilities from chip branch Pingtouge, Infrastructure as a Service (IaaS), Platform as a Service (PaaS) to Model as a Service (MaaS). Coupled with its Trillions of Questions Chinese language model and continuous progress on the Model-Scope platform, it is optimistic about the company's advantageous position in the rapidly growing word-element economy, and has listed it as the preferred stock for Chinese artificial intelligence investments. Citigroup reiterated its "buy" rating on Alibaba, with a target price of HK$204 for Hong Kong shares and $205 for ADR, believing that the company's continuously improving artificial intelligence full-stack capabilities can bring cost synergies and profit expansion opportunities. The bank estimates that Alibaba Cloud's artificial intelligence related revenue will achieve a compounded annual growth rate of 90% from fiscal year 2026 to 2031, and will account for 70% of total cloud revenue by fiscal year 2031.