Citi Raises Alibaba's Target Stock Price Due to Increasing Demand for Artificial Intelligence Cloud

Citigroup has raised its target price for Alibaba's stock. Previously, the company increased its spending on artificial intelligence and stated that data capacity is expected to increase tenfold as demand for AI in the cloud grows. Citigroup raised Alibaba's target price from $187/183 HKD to $217/215 HKD and maintained a buy rating. "We believe Alibaba is in a favorable position to capitalize on the evolution trend of super-intelligent AI, which should result in sustainable growth in cloud business revenue and improved profit margins in the coming years," analysts, including Alicia Yap, wrote in the report. Citigroup also raised its expectations for Alibaba's cloud business revenue for 2026 to 2028, while "conservatively" maintaining its expectations for the cloud business profit margin.