Alibaba Stock Gains Momentum from Analyst Upgrade and Nuclear Energy Strategy

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Alibaba Group is back in the spotlight, propelled by a significant analyst upgrade and a strategic, high-stakes move into the energy sector. The e-commerce titan is turning to nuclear power to meet the colossal electricity demands of its expanding artificial intelligence operations.

A primary catalyst for the renewed investor interest is Alibaba's foray into securing its energy future. Mirroring initiatives by U.S. tech leaders such as Microsoft and Meta, the company is investing heavily in power infrastructure. Through a joint venture with China National Nuclear Power, Alibaba is channeling $35.9 million into nuclear energy sources. This strategic pivot is designed to provide a long-term, stable power supply for its AI data centers, aiming to prevent potential bottlenecks as it scales its computational capabilities.

This operational ambition is underscored by the performance of its "Qwen" AI model family, which has surpassed 700 million downloads. The company is further enhancing Qwen with new functionalities that allow users to execute direct transactions—like booking tickets—within a chat interface, positioning it as a direct challenger to services such as Tencent's WeChat in the race to develop actionable AI assistants.

Market Analysts Raise Their Targets

The energy news coincides with a bullish reassessment from financial analysts. Research firm Arete Research upgraded its rating on Alibaba's stock from "Neutral" to "Buy" this Wednesday, simultaneously lifting its price target to $190. With the shares currently trading around $162 on the Nasdaq, this new target implies an upside potential of approximately 17%.

This optimistic view aligns with a broader positive sentiment on the stock. Data from recent months shows that Alibaba has already received 14 "Strong Buy" ratings from other market observers. Furthermore, institutional interest appears robust, with Migdal Insurance dramatically increasing its stake by almost 3,000% in the last quarter.

Technical Setup Suggests a Potential Inflection Point

The positive fundamental developments are meeting an intriguing technical picture. The stock, trading at €141.80 in European markets, is currently showing a Relative Strength Index (RSI) reading of 29.4, which places it in technically oversold territory. For a sustained recovery to take hold, buyers will need to push the price through key resistance levels to close the current 15% gap to its 200-day moving average.

Key Data Points at a Glance

• Revised Price Target: Arete Research sets a new target of $190 per share.
• Energy Partnership: Joint venture invests $35.9 million in nuclear power for AI infrastructure.
• AI Adoption: The "Qwen" model series has been downloaded over 700 million times.
• Institutional Action: Migdal Insurance expanded its position by nearly 3,000% last quarter.

Together, these factors—a major analyst endorsement and a forward-looking infrastructure investment—are acting as dual engines driving Alibaba's stock narrative forward.