Shares of Alibaba rallied more than 5% on Thursday after Arete Research elevated its rating from neutral to buy, assigning a target of 190. Trading volume climbed to 31.6 million shares, an 81% increase over the 17.5 million average session volume. This upgrade followed a series of recent upward revisions: Robert W. Baird lifted its target from 153 to 174 with an outperform rating, and Jefferies reaffirmed a buy stance while trimming its target to 225. Despite one sell and one hold rating among 20 analysts, the consensus remains a Moderate Buy with an average price objective near 193.

In a bid to capitalize on surging demand for AI accelerators, Alibaba is preparing to restructure its chip unit, T-Head, into a standalone entity with partial employee ownership ahead of an eventual IPO. The move mirrors Baidu’s recent strategy and is seen by investors as a catalyst to crystallize the valuation of China’s most advanced homegrown AI chip maker. Internal documents indicate the new structure will grant management and key engineers equity stakes, aligning incentives but also introducing execution and regulatory timing risks.

Several institutional investors boosted or initiated positions in Alibaba during recent quarters. Verde Servicos Internacionales increased its holding by 6.9%, adding 4,373 shares and lifting its stake value to approximately 7.7 million. NTV Asset Management more than doubled its position, acquiring an additional 8,484 shares for a total of 15,143. New entrants included Ninety One UK and Marex Group, each deploying over 15 million in fresh capital. Y Intercept Hong Kong raised its stake by 197%, purchasing 22,701 shares. Institutions now collectively own roughly 13.5% of the company’s equity.