Alibaba Could Gain More From AI Business Development — Market Talk

Alibaba stands to benefit further from its AI business development, Citi analysts say in a research note. Chief Executive Eddie Wu's messages of a 20-gigawatt AI infrastructure target by fiscal 2033 could translate to $160 billion in external cloud revenue by then, the bank says. That compares with Citi's current forecast of $100 billion in fiscal 2031. The bank also expects Alibaba to continue its high capital expenditure in the coming years. Citi keeps a buy rating on the stock with a target price of HK$189.00. Shares close 1.95% higher at HK$114.80. (tracy.qu@wsj.com)