TLDR
- JPMorgan lifts Alibaba Hong Kong price target by 45% to HK$240, setting the highest analyst target on the street
- New target implies 36% upside based on improved cloud revenue outlook and AI-commerce integration
- Alibaba shares surged 53% in September and are up over 115% year-to-date in 2025
- AI mapping app Amap reached record 360 million daily active users during China’s National Day holiday
- JPMorgan values stock at 12 times fiscal 2028 earnings with room for growth
JPMorgan Chase has established a new street-high price target for Alibaba. The investment bank raised its Hong Kong share target by nearly 45% to HK$240 by the end of 2026.
This new price target represents a 36% gain from Tuesday’s closing price. The target is now the highest among all analysts tracked by Bloomberg.
JPMorgan analysts led by Alex Yao based their upgrade on two key factors. The team cited an improved outlook for cloud revenue and growing synergy between AI and e-commerce operations.
The valuation sits at 12 times JPMorgan’s fiscal 2028 earnings estimate. Analysts say this multiple offers room for upside potential.
Strong September Performance Fuels Momentum
Alibaba’s Hong Kong-listed shares jumped 53% in September. This marked the best performance on the Hang Seng Index for the month.
The rally accelerated after Alibaba announced increased AI spending plans. The company will exceed its original target of more than $53 billion in AI investments.
Alibaba also unveiled a new partnership with Nvidia. This collaboration has strengthened investor confidence in the company’s AI strategy.
American depositary receipts are up more than 115% in 2025. Hong Kong shares have climbed 122% over the same period.
The stock gained 3.5% in Hong Kong trading on Thursday. ADRs rose 2.8% ahead of the U.S. market open.
AI Applications Drive User Growth
Alibaba’s AI-driven mapping application Amap hit a new milestone. The platform recorded over 360 million daily active users on Wednesday.
This record came on the first day of China’s eight-day National Day holiday. The user count demonstrates growing adoption of Alibaba’s AI-powered services.
Yao said Alibaba is positioned to participate at every stage of generative AI. This includes compute infrastructure, platforms, and applications.
The company is improving merchant economics through AI integration. JPMorgan advised investors to look past short-term headwinds from food delivery competition and quick commerce in 2027.
Other Chinese tech stocks also gained on Thursday. Baidu rose 4.5% while JD.com climbed 3.1%. The Hang Seng index added 1.6% overall.
Scope Markets analyst Joshua Mahony noted global investors are seeking alternatives. Many view current Magnificent Seven valuations as stretched.
Excitement has grown around DeepSeek’s newest AI model. The tech company reports better training and reasoning capabilities at lower operating costs.
Alibaba unveiled a new language model last month as part of its AI expansion. The company has ramped up spending commitments on AI infrastructure and development projects.
