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Alibaba Shares Rise on Debut of 1-Trillion-Parameter AI Model as Analysts Boost Price Targets

AI now drives a meaningful share of Alibaba Cloud revenue, reinforcing a pivot that offsets near-term margin pressure from instant commerce.

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Overview

  • Alibaba introduced Qwen-3-Max-Preview, a text-only model reported at over 1 trillion parameters, and its Hong Kong shares gained about 2.4%.
  • Alibaba Cloud revenue grew 26% year over year to RMB 33.4 billion in fiscal Q1 2026, with AI revenue rising at triple-digit rates for an eighth straight quarter.
  • Management says AI-related sales now make up roughly 20% of external cloud revenue, signaling stronger monetization of AI workloads.
  • Barclays’ Jiong Shao raised his price target to $190 with an Overweight rating and expects instant-commerce losses to peak in the September quarter before trending toward break-even.
  • Benchmark’s Fawne Jiang lifted her target to $195 with a Buy rating, citing a headline miss tied to SunArt and Intime divestitures and heavier quick-commerce spending estimated at ~RMB10B in Q1 and ~RMB50B for FY26.