Alibaba Surges Nearly 11% as Losses Narrow and Semiconductor Rotation Powers Rally
BABA•Alibaba shares surged almost 11%, their largest daily gain since September 2025, driven by semiconductor sector rotation alongside narrowed quarterly losses and steady profitability. The rally follows an 18-month low in late June, with RSI rebounding from oversold territory and a consensus 12-month price target implying 72% upside.
1. Shares Jump Nearly 11%
Alibaba shares surged almost 11% today, marking the largest single-session gain since September 2025 as investors rotated out of semiconductor names into China technology equities.
2. Losses Narrowed, Profitability Steady
The company reported a significant narrowing of quarterly net losses alongside steady operating profit margins, providing optimism ahead of its upcoming earnings release.
3. Technical Indicators Recover
Technical indicators showed a rebound from oversold conditions, with the 14-day RSI climbing from 21 after shares hit an 18-month low in late June and testing their year-over-year breakeven level.
4. Bullish Analyst Outlook
Analyst sentiment remains positive, with 22 of 26 covering firms maintaining buy or better ratings and a consensus 12-month price target of $188.02 implying roughly 72% potential upside.
