Lyon: China supports the construction of data centers to Alibaba (09988), causing the stock price to fall. However, the management is determined to gain more market share in AI.

Lyon released a research report stating that the Chinese government plans to invest 2 trillion yuan in building data centers in the next five years, with support from China Mobile Limited (00941) and China Telecom Corporation (00728). Lyon believes this is the reason for the correction in Alibaba-W (09988) stock price. The bank pointed out that this may cause concerns in the market about the commercialization of computing power. However, the bank believes that Alibaba's competitive advantage lies in model as a service (MaaS) and application layer, rather than just infrastructure as a service (IaaS), which is a competitive area that China Mobile and China Telecom cannot touch. Some investors may question whether Alibaba's management culture is competitive in the AI era. The bank believes that large enterprises typically face more challenging organizational structures and cultures when entering new fields, but they also have strong capital and resource advantages. Alibaba's senior management team has shown determination to win more market share in the AI industry.