Announcements Wednesday of the firm’s planned hike in AI spending and a new partnership with Nvidia Corp were the latest drivers of gains in its stock, and provided a sentiment boost for peers and suppliers as well. Options data show increasing bets on further gains in Alibaba shares, which remain cheap relative to global peers.
Growing enthusiasm for artificial intelligence plans at Alibaba Group Holding has once again made it China’s hottest technology stock, as investors rush back into the US$420 billion internet titan.
Hong Kong-listed shares of the company are up 50% in September, making them the best performer on the Hang Seng Tech Index. That marks a turnaround after months of sluggishness on investor concerns over a destructive price war in China’s food-delivery market.
