Alibaba shares jump 19% on strong cloud performance

September 1, 2025 (MLN): Alibaba’s Hong Kong-listed shares soared more than 19% on Monday, reaching their highest level since March, driven by strong quarterly results from its cloud computing unit and news of its new AI chip development.

The rally in Hong Kong builds on momentum from the company’s Friday earnings report, when its New York-listed shares closed nearly 13% higher.

For the June quarter, Alibaba reported revenue of 247.65 billion Chinese yuan ($34.73bn), marking a 2% year-on-year increase, slightly below analyst expectations.

However, net income surged 78% annually, surpassing forecasts, as CNBC reported.

The cloud computing unit stood out with revenue growing 26% year-on-year, an acceleration compared to the previous quarter.

Alibaba has been actively investing in AI infrastructure, developing its own models, and offering AI services through its cloud unit.

AI-related product revenue maintained triple-digit year-on-year growth for the eighth consecutive quarter, highlighting the division’s role in the company’s monetization of artificial intelligence, similar to efforts by Microsoft and Google.

In addition, Alibaba is reportedly developing a new AI chip, a development that also contributed to Monday’s share price rally.

Meanwhile, Alibaba’s core e-commerce business is showing signs of revival, with the company venturing into China’s competitive “instant commerce” market through Taobao, delivering certain products within an hour.

Investments in quick commerce have weighed on adjusted earnings for the e-commerce business, but investors have shown support for the company’s ongoing strategic investments.

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