Citi analysts said Alibaba could see more upside from the expansion of its artificial intelligence business. The call follows a target set out by CEO Eddie Wu, who said the company aims to reach 20 gigawatts of AI infrastructure capacity by fiscal year 2033. Citi said that scale could push Alibaba’s external cloud revenue to $160 billion, above the bank’s earlier forecast of $100 billion for fiscal year 2031. The firm kept its Buy rating on Alibaba and maintained a HK$189 price target. The note ties Alibaba’s AI infrastructure push directly to expectations for stronger cloud revenue over the coming years.
According to ChainCatcher, Citi analysts said Alibaba could benefit further from the growth of its artificial intelligence business.
Alibaba CEO Eddie Wu has set a goal of reaching 20 gigawatts of AI infrastructure capacity by fiscal year 2033. Citi said that target could lift the company’s external cloud revenue to $160 billion, above its $100 billion forecast for fiscal year 2031.
Citi maintained its Buy rating on Alibaba with a HK$189 price target.
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