Alibaba Chairman Credits Power Grid, Open Source For China's AI Boom

Alibaba Group Holding Limited (NYSE:BABA) is sharpening its AI push as it leans on China's structural advantages—from power infrastructure to open-source ecosystems—to drive the next phase of growth.

China's AI Edge

Chairman Joe Tsai said China has driven recent AI breakthroughs by strengthening its power grid, promoting open-source models, and building a complete manufacturing supply chain.

Tsai said heavy investment in power infrastructure—averaging about $90 billion annually—has given China a cost and supply advantage in the energy-intensive AI sector, creating a strong foundation for growth, SCMP reported on Sunday.

He added that open-source models have lowered barriers to AI, enabling broader access and supporting broader economic benefits. At the same time, China's large-scale manufacturing system generates vast amounts of industrial data that help train and improve AI systems.

Tsai also said the focus is on expanding real-world AI applications across sectors like consumer services, healthcare, finance, and business, with Alibaba advancing these efforts through its Qwen model as it moves toward agentic AI.

Technical Analysis

Alibaba is trading 11.4% below its 20-day SMA and 21.8% below its 100-day SMA, keeping the intermediate trend down and putting the burden on bulls to reclaim moving-average resistance. Shares are down 8.98% over the past 12 months and are currently positioned closer to their 52-week lows than highs.

The RSI is at 25.21, which is oversold and often signals that selling pressure may be stretched in the near term. Meanwhile, MACD is at -7.0995 and below its signal line at -6.5806, indicating bearish momentum remains in place despite the oversold reading. The combination of oversold RSI (below 30) and bearish MACD suggests mixed momentum.

• Key Resistance: $139.00
• Key Support: $117.50

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the May 14, 2026 (estimated) earnings report.

• EPS Estimate: 90 cents (Down from $1.73 YoY)
• Revenue Estimate: $35.04 Billion (Up from $32.58 Billion YoY)
• Valuation: P/E of 21.7x (Suggests fair valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $187.00. Recent analyst moves include:

• JP Morgan: Overweight (Lowers Target to $205.00) (Mar. 20)
• Mizuho: Outperform (Lowers Target to $190.00) (Mar. 20)
• Barclays: Overweight (Lowers Target to $190.00) (Mar. 20)

Top ETF Exposure

• SPDR NYSE Technology ETF (NYSE:XNTK): 3.53% Weight
• Nomura Focused Emerging Markets Equity ETF (NASDAQ:EMEQ): 4.57% Weight
• Robo Global Artificial Intelligence ETF (NYSE:THNQ): 2.57% Weight

Significance: Because BABA carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

BABA Price Action: Alibaba shares were down 0.58% at $121.70 during premarket trading on Monday, according to Benzinga Pro data.

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