AI revenue shines, Alibaba soars nearly 19%, marking the largest increase since 2022.

Alibaba's stock rose nearly 19% at one point during trading, reaching 137.5 Hong Kong dollars, potentially setting a new record for the largest single-day increase since March 2022. The financial report for the first quarter of the 2026 fiscal year released by Alibaba last Friday revealed that Alibaba Cloud's revenue reached 33.398 billion yuan, a 26% year-on-year increase, exceeding market expectations. Revenue related to AI continued to grow at a three-digit rate, with AI contributing over 20% to external business revenue. The rapid expansion of AI demand has also driven an increase in the demand for computing, storage, and other public cloud services. In the second quarter of 2025, Alibaba's capital expenditure reached 38.6 billion yuan, a 220% year-on-year increase and a 57.1% increase quarter-on-quarter, setting a new quarterly record. It is worth noting that Alibaba has invested over 100 billion yuan in AI infrastructure and AI product development in the past four quarters. Analysts point out that the three-digit growth in AI revenue and strong cloud computing sales indicate that Alibaba is repositioning itself to achieve long-term relevance in the technology field, rather than just dominating the retail industry.