Alibaba Cloud experiencing rapid growth in AI adoption, driving revenue and expanding globally.

From Nasdaq: 2025-06-20 10:41:00

Alibaba’s Cloud Intelligence Group, part of Alibaba Cloud, is experiencing rapid growth in AI adoption across various industries, driving revenue growth. The company expects increased demand as businesses shift AI workloads to the cloud, leading to investments in AI products and services to maintain market leadership.

Alibaba is innovating with new AI models and expanding globally with new partnerships and a second data center in South Korea. In Q4 2025, Alibaba Cloud generated $4.15 billion in revenue, driven by AI product adoption. With triple-digit growth in AI-related revenues, Alibaba Cloud is vital to the company’s AI-driven future.

Amazon and Microsoft are fierce competitors in AI-powered cloud services, with both companies expanding their offerings to drive AI adoption in enterprises. Amazon’s Bedrock and Microsoft’s Azure AI Essentials program are key initiatives in their AI strategies.

Alibaba’s stock has outperformed industry and sector growth, with a forward P/E ratio of 10.37X compared to the industry’s 24.39X. The company has a Value Score of B and is expected to see 9.73% year-over-year growth in Q1 fiscal 2026 earnings.

Analysts predict Alibaba’s fiscal 2026 earnings to grow by 17.87% year-over-year, with a current Zacks Rank of #4 (Sell). The company is positioned to benefit from the growing demand for AI, machine learning, and IoT, with the semiconductor industry projected to reach $803 billion by 2028.



Read more at Nasdaq: Alibaba Cloud’s Rapid Rise: Is AI Setting Up More Upside Ahead?