Shares of Alibaba Group surged 5.2% on Thursday after Arete Research raised its rating from neutral to buy and set a $190 price target. Mid-day trading volume reached 31.6 million shares, an 81% increase over the 17.5 million-share daily average. This upgrade follows recent target adjustments by other firms: Robert W. Baird lifted its target from $153 to $174 with an outperform rating; Sanford C. Bernstein trimmed its target from $200 to $190 while maintaining an outperform stance; Jefferies cut its target from $231 to $225 but kept its buy recommendation. With eighteen buy ratings, one hold and one sell, the consensus among analysts is a moderate buy with an average target near $193.

Alibaba is moving forward with plans to spin off its chip-making arm, T-Head Semiconductor, into a standalone entity ahead of an initial public offering. The restructuring will include partial employee ownership to align incentives before any listing. This mirrors a similar approach taken by Baidu and comes at a time when investor demand for AI accelerator plays is strong. Market observers note that separating T-Head could unlock significant valuation uplifts given the unit’s focus on AI chips designed to challenge established players in the sector.

In recent quarters, major institutional investors have been reshaping their Alibaba holdings. Verde Servicos Internacionais S.A. increased its stake by 6.9%, adding 4,373 shares to reach 67,773 shares valued at approximately $7.7 million. NTV Asset Management LLC more than doubled its position, boosting its stake by 127.4% to 15,143 shares (about $2.7 million). Y Intercept Hong Kong Ltd expanded its holdings by 197% to 34,225 shares, now worth around $3.9 million. New entrants include Ninety One UK Ltd with a $15.3 million position and Marex Group plc with $17.1 million invested in the company. Institutional ownership now stands at roughly 13.5% of the outstanding shares.