China AI:Alibaba Cloud Gains Tailwind from AI Demand

Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute investment advice. We are not registered investment advisors, and nothing in this newsletter should be construed as a recommendation to buy or sell any securities. Always do your own research and consult with a licensed financial professional before making any investment decisions.

Following our previous customer-based analysis, we've established a preliminary understanding of AI-driven cloud demand in the Chinese market.

In this report, we will analyze the revenue impact of AI on Alibaba Cloud, the quantity of GPUs and ASICs purchased by Alibaba Cloud, Alibaba Cloud's profit margins, its revenue forecasts, and how these compare with expectations.

Based on these insights, we have conducted an assessment of Alibaba Cloud's potential growth trajectory in fiscal year 2026 (FY26).

Below is Alibaba Cloud's revenue forecast that includes AI revenue.