Alibaba Cloud Targets 20+ GW Capacity by 2032; Q3 Cloud Revenue Seen Up 53%
BABA is trading near its 52-week low of $91.99 (15% above the low).
Summary
Alibaba Cloud is targeting 20+ GW of global data-center capacity by 2032 to meet AI compute demand, with Citi estimating that could support over $160 billion in external cloud revenue. For Q3, the company is expected to report cloud revenue up 53% YoY, external cloud up 60%, and cloud EBITA margin around 12%. AI Labs is projected to lose about RMB11B, but AliCloud plus AI Labs may reach breakeven in Q4. The company also plans new cloud regions in Turkey, Finland, and the Netherlands, plus capacity boosts in Malaysia, Germany, UAE, France, and Hong Kong. Nomura forecasts Q3 revenue of roughly RMB 272B and EBITA of RMB 30B, maintaining a $178 sum-of-parts target. This follows Alibaba's recent HK$80B share placement to fund AI infrastructure and the launch of its Zhenwu V900 AI chip, underscoring aggressive AI expansion.
At the time of this announcement, BABA was trading at $105.70 on NYSE in the Technology sector, with a market capitalization of approximately $264.4B. The 52-week trading range was $91.99 to $182.50. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.