0752 GMT - Alibaba's cloud business will likely further benefit from a surge in AI inference demand after Lunar New Year, Daiwa analyst John Choi writes in a note. After DeepSeek's breakthrough during the Lunar New Year, surging demand has created a cloud supply shortage, he adds. As Alibaba has proactively built up cloud capacity via aggressive capex investments, the company is best-positioned as cloud market leader to benefit from the significant pickup in public cloud consumption, he says. Daiwa raised its fiscal 2026 cloud revenue growth forecast for Alibaba to 20%. The brokerage maintains a buy rating on the stock and raises the target price to HK$175.00 from HK$165.00. Shares are last at HK$140.00. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
March 07, 2025 02:52 ET (07:52 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.