Alibaba Group likely stepped up AI investment in the quarter ended March,
according to Daiwa Securities analysts.
They say losses from model training and heavy marketing for the Qwen app likely
weighed on earnings. However, they remain positive on Alibaba’s AI potential and
medium-term monetization outlook.
A key risk is more aggressive subsidy spending to acquire users in areas like AI
and food delivery. Daiwa keeps a “buy” rating with a target price of HK$184.
