JPMorgan Chase raised its target price for Alibaba's H shares from HK$165 to HK$240.

JPMorgan Chase has significantly raised its target price for Alibaba's Hong Kong stock to 240 Hong Kong dollars, stating that the growth of cloud computing and e-commerce businesses is expected to support its higher valuation. Analysts including Alex Yao stated in the report that Alibaba Cloud's revenue growth rate has accelerated for 8 consecutive quarters, with a year-on-year growth of 26% in the second quarter of 2025, mainly driven by the demand for generative AI in areas such as the Internet, autonomous driving, and embodied intelligence. It is expected that the popularization speed of generative AI in China may exceed the previous wave of Software as a Service (SaaS), as the space for efficiency improvement is more extensive and the deployment threshold is lower. It is expected that in the next 12-36 months, generative AI will transition from the tool trial stage to agent automation, covering marketing, service, coding, financial operations, and supply chain, with service costs steadily decreasing and higher conversion rates/throughput for most customer-facing channels. The target price for Alibaba's US stock has been raised from $170 to $245, and the target price for its Hong Kong stock has been raised from 165 Hong Kong dollars to 240 Hong Kong dollars.