Alibaba Shares Soar 19% as AI Boom Boosts Cloud Sales

Hong Kong – Alibaba’s Hong Kong-listed shares jumped nearly 19% after the company reported strong gains in its cloud computing unit, fueled by rising demand for artificial intelligence services.

The Chinese e-commerce giant posted revenue of 247.65 billion yuan ($34.6 billion) in the June quarter, up 2% year-on-year but below analyst estimates. Net income surged 78% to 43.11 billion yuan, partly due to investment gains and the disposal of Turkish e-commerce firm Trendyol.

Cloud computing was the standout performer, with sales climbing 26% to 33.4 billion yuan. Alibaba said AI-related product revenue “maintained triple-digit year-on-year growth” for the eighth consecutive quarter. CEO Eddie Wu noted that the cloud unit has become central to monetizing AI, echoing strategies seen at Microsoft and Google.

Meanwhile, the company’s core e-commerce business saw 10% revenue growth but faced profit pressure from heavy investment in “instant commerce,” where rivals Meituan and JD.com are also competing aggressively. Alibaba expects this sector to add 1 trillion yuan in annualized gross merchandise value within three years.

Despite challenges in domestic retail, Alibaba’s international commerce arm, including AliExpress, recorded a 19% revenue jump as losses narrowed. Investors have responded positively, pushing the firm’s U.S.-listed shares up 40% so far this year.