CMB International Securities has raised its target price for Alibaba to HK$184, citing strong long-term potential in AI commercialization despite near-term losses. The brokerage attributes the optimism to Alibaba's leadership in full-stack AI and its growing Model as a Service (MaaS) segment, which is expected to drive margin improvements and revenue growth. While Alibaba underperformed in its fiscal fourth quarter due to increased spending on AI development, consumer subsidies, and merchant support, analysts believe these investments will pay off in the coming years.

The firm maintains an 'Outperform' rating for Alibaba, reaffirming it as a top pick in the China internet and AI model space. CMB International forecasts 9% year-on-year revenue growth for fiscal 2027 and 12% for 2028, with non-GAAP net profit expected to rise 77% and 29% respectively. The target price for Alibaba’s U.S.-listed ADRs was also increased from $173 to $188.

This move reflects growing confidence in Alibaba’s strategic shift toward AI-driven services, even as it prioritizes growth over immediate profitability. The focus on MaaS positions Alibaba to compete in the expanding AI infrastructure market, though execution and market conditions remain key risks.