Here's why Alibaba (BABA) stock price is soaring today

Group 1 - Alibaba stock has experienced significant growth since the beginning of 2025, with a year-to-date return of 68.44% as of early March [2][4] - The release of the AI model DeepSeek in late January sparked renewed interest in Chinese tech stocks, followed by Alibaba's launch of Qwen 2.5 and a collaboration with Apple to enhance AI features on iPhones [1][2] - The company plans to invest more in AI and cloud computing over the next three years than it has in the past decade, indicating a strong commitment to these sectors [2] Group 2 - In March, Alibaba announced the release of QwQ-32B, a new AI model that reportedly meets or exceeds the performance of DeepSeek's leading model, R-1 [5] - The Chinese AI industry is currently experiencing a price war, with intense competition among startups and established companies, highlighting the rapid evolution of the sector [6] - Success in the domestic market is crucial for Chinese companies, as it provides a stable foundation for international expansion, as seen with companies like Xiaomi and BYD [7] Group 3 - Despite the impressive stock rally, Alibaba's stock price is still approximately 50% below its all-time high, reflecting ongoing market confidence [8] - Notably, Alibaba is the largest holding of investor Michael Burry, and Morgan Stanley has set a price target of $180 for BABA shares, suggesting a potential upside of 25.29% from current levels [9]