This Michael Burry AI stock just got a price target upgrade; This is what changed

Core Viewpoint - The Chinese stock market is experiencing a turnaround, with Alibaba (NYSE: BABA) benefiting significantly from this shift, highlighted by a major price target upgrade from Morgan Stanley. Group 1: Market Conditions - The Chinese stock market has faced significant losses for years, but conditions began to improve in September 2024, with a notable reversal by early 2025 [1] - The CSI 300 index rose 19.91% and Hong Kong's HSI rallied 15.60% in September and October, indicating a positive shift in market sentiment [7] Group 2: Alibaba's Performance - Alibaba's stock received a price target upgrade from Morgan Stanley, increasing from $100 to$180, predicting a 27.79% rally from its price of $140.85 [2] - The upgrade was supported by Alibaba's improved outlook and its exposure to artificial intelligence (AI), alongside a favorable outlook for the internet industry [3] Group 3: Technological Developments - The recent rally in Alibaba's stock is partly attributed to the unveiling of its AI model, Qwen 2.5, which contributed to the positive market sentiment [5] - The introduction of the DeepSeek AI model has disrupted the tech sector, indicating a shift from consumption to technological advancements in the Chinese internet industry [4][6] Group 4: Investment Initiatives - Alibaba announced a$53 billion investment in AI infrastructure over the next three years, reflecting its commitment to technological innovation [9] - Michael Burry's significant investment in Alibaba has turned into a lucrative position, benefiting from the combined effects of government stimulus and the AI rally [10]