Alibaba shares jump 12% in Hong Kong as AI and chip revenue lift earnings optimism
Alibaba shares rose as much as 13.8% intraday in Hong Kong on Wednesday before closing up 12.2%. The gain was driven by expectations that revenue will reaccelerate on artificial intelligence demand and narrowing losses in food delivery. It was the stock's strongest day this year.
According to the South China Morning Post, shares of Alibaba Group Holding rose as much as 13.8% intraday in Hong Kong on Wednesday. The stock closed up 12.2% at HK$107.5 (US$13.71).
Analysts expect revenue to reaccelerate in the June quarter, driven by growing demand for artificial intelligence and narrowing losses in the food-delivery business. That expectation triggered the strongest daily gain this year.
Shares in rivals Tencent Holdings and Meituan also rose 3.8% and 3.3% respectively, while the Hang Seng Tech Index gained. The move points to renewed investor interest in Chinese technology companies.
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