Alibaba Likely Has Large AI Revenue Potential -- Market Talk

Dow Jones05-15

0559 GMT - Alibaba's shares appear undervalued to Morningstar given its given AI revenue potential. While investors may view its long-term AI revenue targets as overly ambitious, Alibaba's full-stack AI capabilities, gives it prime advantage to capture large revenue potential from AI, analyst Chelsey Tam says in a note. Alibaba is prioritizing AI investment over its quick commerce business, as evidenced by its latest earnings call, where AI was mentioned three times more frequently than quick commerce, Tam says. The analyst cautions that cash outflows and declining net cash levels could limit its ability to maintain high investments in both fields. Morningstar maintains its fair value estimates at US$258.00 for its ADS and 251.00 Hong Kong dollars for its H-shares. ADS last closed at US$141.12 and H-shares last traded at HK$141.12. (jason.chau@wsj.com)

 

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May 15, 2026 01:59 ET (05:59 GMT)

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