Changjiang Securities: Alibaba Cloud's turning point has arrived Alibaba (09988) is expected to soar again in the AI era.

According to the financial news app 36Kr, Changjiang Securities released a research report stating that Alibaba (09988) achieved cloud revenue of 33.398 billion yuan in the first quarter of its 26th fiscal year, a year-on-year increase of 26%, marking the highest growth rate in three years; the profit margin of cloud business reached 8.8%, basically flat year-on-year; capital expenditure for this quarter was 38.7 billion yuan, an increase of 220% year-on-year. Starting in 2024, with the comprehensive acceleration of domestic AI, the demand for basic resources will rapidly increase, and cloud basic resources will return to a growth channel, ushering in the first round of value reassessment. In the latest quarter's financial report, Alibaba's cloud revenue growth rate increased to 26%, reaching the highest level in three years, which may indicate the beginning of a new growth cycle for Alibaba Cloud.