Alibaba (BABA) Reaffirmed "Overweight" by Morgan Stanley Amid Cloud Acceleration

Alibaba Group Holding Limited (NYSE:BABA) is one of the AI Stocks Investors Are Watching Closely. On September 29, Morgan Stanley reiterated the stock as “Overweight” and raised its price target to $200 per share from $165.

The firm cited accelerating growth in its cloud division and sustained momentum in core operations behind the raise.

“We raise our cloud growth estimates to 32% for F26 and 40% for F27, driven by increased capex, model upgrades, strategic partnerships and accelerated international expansion.”

The firm is more bullish on Alicloud following the company’s Apsara Conference.

“On the supply end, we increase our capex estimates to Rmb130-135bn each year over F26-28, from Rmb100bn-108bn previously, assuming 10-15GW additional datacenter capacity by 2032.”

Morgan Stanley also pointed to “solid demand with the number of tokens doubling every 2-3 months.”

Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally.

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