Alibaba Shares Surge 4.3% as Cloud Revenue Jumps 34%, CEO Says AI Demand Outpaces Server Capacity
Summary
Alibaba shares surge 4.3% as cloud revenue rockets 34% to 39.8 billion yuan, with CEO Eddie Wu revealing AI demand is growing so fast the company cannot deploy servers quickly enough to meet customer needs.
Key Points
- Alibaba shares rise 4.3% in premarket trading as cloud computing revenue jumps 34% year-over-year to 39.8 billion yuan, beating expectations of 37.9 billion yuan
- CEO Eddie Wu states AI demand is accelerating so rapidly that the company cannot keep pace with customer demand for server deployment, suggesting the initial $53 billion AI investment target may need to increase
- Overall profitability drops 78% due to heavy investments in quick commerce, but investors focus on strong growth in cloud services and core e-commerce divisions