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Investing.com -- Bank of America Securities hiked its price target on Alibaba Group (NYSE:BABA) shares to $195 from $168, pointing to what it sees as a transformative opportunity as the company commits billions more to artificial intelligence and cloud computing in the so-called Artificial Superintelligence (ASI) era.
At its annual Apsara Conference, the Chinese tech giant said it will invest beyond its previously announced RMB380 billion capital expenditure plan over the next three years.
“Management believes large models will be the next generation of operating systems while AI cloud will be the next generation of computers,” BofA analyst Joyce Ju said in a note.
Alibaba envisions only five or six super cloud platforms worldwide, with itself positioned as a leading full-stack AI services provider.
During the event, Alibaba unveiled upgrades across its AI ecosystem, including its largest and most advanced large language model, Qwen3-Max, whose instruct version it said surpasses GPT-5-Chat.
Other launches included the Qwen3-VL vision-language model, improvements to its multimodal Wan and Fun model series, and new tools such as Bailian, a cloud-based studio designed to support AI agent development.
On the infrastructure side, it introduced the Panjiu Supernode Server and new network and storage systems built for AI workloads. According to Omdia, Alibaba Cloud already holds a 36% share of China’s AI cloud market, ranking first among providers.
Ju said these developments support stronger cloud commercialization, with upside driven by AI-native demand, overseas expansion and traditional industries adopting intelligent solutions.
“Eyeing the huge opportunity in the new ASI era, the company positions itself as a world’s leading full-stack AI services provider,” the analyst wrote.
BofA now models 30%+ compound annual growth (CAGR) for the cloud business over the next three years, while maintaining a solid e-commerce outlook.
Reflecting these expectations, the bank raised its fiscal 2026–28 earnings per American depositary share (ADS) estimates by up 0% to 4%.