Shares of Alibaba jumped after Arete Research raised its rating on the company from neutral to buy, setting a new target well above the prior consensus. During mid-day trading, volume surged to 31.6 million shares, an 81% increase over the three-month average, reflecting heightened investor interest. Several other firms have also adjusted their outlooks: Robert W. Baird lifted its price target while maintaining an outperform rating, Sanford C. Bernstein trimmed its objective but stayed bullish, and Benchmark reiterated its buy stance. In total, eighteen analysts rate the stock a buy, one a hold and one a sell, yielding an average target that implies further upside from current levels.

Alibaba is reportedly preparing to spin off its in-house chipmaking division, T-Head, into a standalone entity with partial employee ownership ahead of a potential listing. The move mirrors similar strategies by peers and is designed to capitalize on the current strength in AI-accelerator valuations. Management plans internal restructuring to streamline operations and align incentives before filing for an initial public offering, a transaction that could take place in the coming quarters if market conditions remain favorable.

Several large institutional holders have been active in recent quarters. Verde Servicos Internacionais increased its stake by nearly 7%, adding approximately 4,400 shares valued at over seven million dollars. NTV Asset Management more than doubled its position, acquiring over 8,400 additional shares, while newcomer Ninety One UK Ltd and Marex Group each initiated multi-million-dollar positions in the company. As of the latest filings, institutional investors account for roughly 13.5% of the company’s total shares outstanding.