CICC: Maintains Alibaba's "Outperform" rating with a target price of HKD 109

CICC published a research report stating that the management of Alibaba mentioned at the Alibaba Cloud Conference that they are optimistic about the development of generative AI. They believe that the digital world and the physical world will gradually be reshaped by AI, with autonomous driving and robotics industries being important applications. CICC pointed out that Alibaba Cloud is committed to upgrading the cloud computing system in the AI era, and they believe that through technological innovations such as one cloud with multiple cores, Alibaba Cloud can make up for supply shortages and demonstrate the value of leading cloud providers. The bank also believes that the opportunities of generative AI are favorable for widening the gap between Alibaba Cloud and traditional cloud providers. Alibaba Cloud has competitive advantages in high-level computing chip layout, software technology capabilities, algorithm applications, etc. Proactive research and development of large-scale model technology and leading the transformation of cloud computing industry can play a leading role in driving the company's embrace of AI and also serve as an important driver for the recovery of Alibaba Cloud's growth rate. The bank maintains a "outperform industry" rating for the group with a target price of HKD 109