Alibaba Group (BABA) is amplifying its position in the global AI landscape by developing proprietary technologies, including the Qwen AI models and the Zhenwu V900 AI chip, which is set for commercial use in 2027. The company is expanding its AI infrastructure significantly, fueled by a RMB380 billion investment plan, of which roughly RMB190 billion has already been spent.
Alibaba Cloud is broadening its international reach with plans for new data centers in Turkey, Finland, and the Netherlands, aiming for a global data center capacity of over 20 GW by 2032. Currently, the company operates 107 availability zones globally and has achieved triple-digit year-over-year growth in AI-related products for 12 consecutive quarters, contributing to more than one-third of its external revenues.
As Alibaba navigates significant investment and execution risks, the Zacks Consensus Estimate forecasts an EPS growth of approximately 67% for fiscal 2027 and 40% for fiscal 2028, while continuing to maintain a Zacks Rank of #3 (Hold).
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