J.P. Morgan: Alibaba expected to benefit from the increasing adoption of AI

Jefferies analysts stated in a research report that Alibaba Group could benefit from the increasing adoption of AI. These analysts pointed out that the Chinese e-commerce company is making significant updates to its Xiaowen App, integrating the chatbot with its core ecosystems like the Taobao shopping platform. They added that at the industry level, the rising adoption of AI is expected to drive cloud demand, which should benefit Alibaba Cloud. The analysts wrote that Alibaba's cloud business may "capture most of the industry AI cloud incremental revenue and expand market share by 2026." Jefferies maintains a buy rating on the company's H shares with a target price of 218.00 Hong Kong dollars. The stock is currently trading at 165.20 Hong Kong dollars.