Morningstar analyst Chelsey Tam said China’s planned data-center build for
government and SOE AI workloads could dent demand for Alibaba’s public-sector
cloud and cut Alibaba’s annual cloud-revenue forecast from fiscal 2030 onward by
10%. Morningstar lowered its Alibaba ADR fair value by 7% to $241 but still
regards the stock as undervalued, saying fears over logistics losses and rising
compute costs are overstated. It added Alibaba’s limited US operations mean US
Legislative risk should have only a limited impact.