Shares of Alibaba surged after Arete Research upgraded the company from neutral to buy, setting a $190 price target. Trading volume climbed to 31.6 million shares, an 81% increase over the 10-day average, as investors reacted to the more bullish outlook. This upgrade follows recent analyst revisions by Robert W. Baird (raising its target to $174 with an outperform rating) and Jefferies (buy rating, $225 target), underscoring growing confidence in Alibaba’s growth trajectory underpinned by its expanding cloud and AI businesses.

Alibaba is moving forward with plans to spin off its T-Head semiconductor division into a standalone entity, mirroring a similar strategy by Baidu. The proposed restructuring would grant partial ownership to employees and position T-Head for a separate listing, unlocking value by isolating its fast-growing AI chip operations. Industry observers note that valuations for China’s chip makers have risen above 30 times forward earnings, suggesting the spin-off could fetch a premium if market conditions remain favorable.

A range of institutional investors has been adjusting their Alibaba positions: Verde Serviços added 6.9% more shares during the second quarter, now holding roughly 67,800 shares; NTV Asset Management boosted its stake by 127.4% in the third quarter to approximately 15,100 shares; and Y Intercept Hong Kong expanded by 197%, acquiring an additional 22,700 shares. These moves coincide with new positions taken by Ninety One UK and Marex Group in the same period, reflecting sustained institutional conviction in Alibaba’s long-term prospects.