Alibaba shares have taken a breather in recent weeks, but that could be a buy area for growth investors.
BABA – Daily Chart
The price of BABA has found support at its previous high in March, which could provide investors with an area to return to bullish momentum.
U.S.-listed shares of the tech company trended on Stocktwits this week on speculation that Meta was using its Qwen AI model and that Alibaba was weighing a large-scale purchase of AI accelerators to boost its cloud infrastructure.
The developments come after a positive year for the e-commerce and cloud giant, which is up 80% year-to-date. A rapid expansion of AI offerings and strong cloud growth drove the price increase. China’s AI tech was undervalued at the start of the year when the DeepSeek model arrived.
Alibaba’s Qwen AI tool made headlines after reports that its adoption is accelerating, raising concerns among Western AI companies that have long dominated the sector. Tech magazine Wired said on Saturday that U.S. companies were increasingly adopting the Qwen model to reduce costs. Writers also said that 2026 could see substantial expansion from Alibaba.
Downloads of Chinese AI models on HuggingFace exceeded those of U.S. models in July, with Airbnb, Perplexity, and Nvidia all using Qwen. Bloomberg also reported last week that Meta is using Qwen, alongside Google’s Gemma tool.
Meanwhile, Alibaba is said to be in talks to purchase 40,000 to 50,000 AMD MI308 AI chips, which are China-compatible. That could help to boost the company’s cloud offering and add to its revenue in 2026. BABA shares should continue higher if U.S. tech stocks keep rising, and the current level is worth watching for buyers to emerge.
