Alibaba Group (BABA US) Buy: Key takeaways from AliCloud conference

研报英文原文证据摘录

Alibaba Group (BABA US) Buy: Key takeaways from AliCloud conference

21 May 2026

Alibaba Group (BABA US) EquitiesInternet Software & Services

Buy: Key takeaways from AliCloud conference China

◆ New Qwen 3.7 model family shows stronger performance in MAINTAIN BUY

agentic tool use, coding, and long-horizon task handling

TARGET PRICE (USD) PREVIOUS TARGET (USD)

◆ New in-house AI chips improve infrastructure reliability

180.00 180.00

◆ Maintain Buy with unchanged TP of USD180

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A full stack Agentic AI upgrade: We attended the AliCloud conference online

on 135.64 +32.7%20 May. BABA unveiled its full-stack upgrade for agentic AI spanning new chips,

(as of 19 May 2026)

cloud infrastructure and products, frontier models, and agentic applications. This

further solidifies BABA’s positioning in agentic AI, but full financial impact awaits its MARKET DATA

Market cap (USDm) 325,419 Free float 92%

pricing plans. A few key points: 1) New models: Qwen 3.7 max improved in advanced Market cap (USDm) 325,419 BBG BABA US

coding and long-running AI agent tasks. 2) Hardware upgrade and integration: 3m ADTV (USDm) 1,526 RIC BABA.N

New Zhenwu M890 delivers 3x better performance over its predecessor. Alibaba

FINANCIALS AND RATIOS (CNY)

paired the Qwen models with the Panjiu AL128 Supernode Server, which packages Year to 03/2026a 03/2027e 03/2028e 03/2029e

128 AI accelerators including M890 into one single rack to handle massive concurrent HSBC EPS 26.80 43.74 66.21 82.63

HSBC EPS (prev) 26.80 43.74 66.21 82.63

requests from AI agents. Cumulative Zhenwu chip shipments reached 560k units as of Change (%) 0.0 0.0 0.0 0.0

Apr 26, rapidly growing from 470k units in Feb 26 (Exhibits 3 and 4). 3) Better model Consensus EPS 33.37 45.78 63.95 83.51