Alibaba (BABA) shares advanced nearly 10% today after the Chinese tech giant announced a partnership with Nvidia (NVDA), marking a pivotal moment in its aggressive push into artificial intelligence (AI).
According to the company’s press release, this partnership will integrate Nvidia’s robotics software and physical AI development tools into its cloud platform.
This will enable customers to develop sophisticated applications like autonomous vehicles and humanoid robots. Including today’s rally, Alibaba stock is up roughly 110% year-to-date.
Alibaba’s partnership with Nvidia positions it at the forefront of AI infrastructure in China, an industry experiencing explosive global demand.
By integrating Nvidia’s robotics and physical AI solutions into its cloud platform, BABA can offer its enterprise clients advanced capabilities in autonomous systems and intelligent robotics, both key growth areas.
The alliance strengthens Alibaba Cloud’s competitiveness against rivals like Tencent (TCEHY) and Baidu (BIDU) while aligning with Beijing’s strategic push for domestic artificial intelligence leadership.
The move also signs Alibaba’s commitment to diversifying beyond e-commerce, tapping into high-margin, future-facing technologies.
Investors view this as a catalyst for long-term revenue growth and innovation, which could drive BABA stock up further from current levels through the remainder of 2025.
Alibaba shares remain worth owning as the company’s cloud division is showing promising growth, with intelligent cloud revenue up 26% year-over-year, validating its AI strategy.
The launch of Qwen3-Max, featuring over 1 trillion parameters, positions Alibaba competitively against leading global AI models from companies like OpenAI and Google.
BABA’s global expansion plans include new data centers across Netherlands, Brazil, and France, coupled with additional facilities planned for Mexico, Japan, South Korea, Malaysia, and Dubai, further underscore the firm’s ambition to become a global AI leader.