Alibaba stock rallied again in Wednesday morning trading, pushing shares of the China tech giant up toward a two-year high. A reported partnership with Apple is helping bolster confidence in Alibaba's AI strategy.
U.S.-listed Alibaba stock was last up more than 5% at 118.52 on the stock market today. Shares have advanced 12% this week and are up 37% in 2025.
Apple is partnering with Alibaba to bring AI services to its iPhone and other devices in China, according to a report Tuesday by The Information. The two companies have submitted the AI tools to regulators in China for approval. Apple had previously considered partnering with Baidu and Tencent, according to the report.
Alibaba's momentum this year has been helped by its overall AI push. On Jan. 29, the company released an AI model it said outperforms the models of China-based rival DeepSeek. Alibaba's models are also comparable to "top tier models," the company said.
Shares have rallied in the weeks since. Alibaba stock broke out Feb. 7 above a 103.67 buy point on an 82-day cup-with-handle pattern, according to MarketSurge.
Alibaba Stock: December Quarter Earnings On Deck
Alibaba stock's intraday high of 118 marked its highest level since Jan. 20, 2023. The stock surpassed a 117.82 high that Alibaba reached in mid-October, when China stocks rallied on pledges from the Chinese government for economic stimulus. But those gains last fall faded later in the year and Alibaba stock closed 2024 with a modest 9% overall gain.
The tech giant's strong start to 2025 will be tested next Thursday, when Alibaba reports its fiscal third quarter earnings results.
Alibaba stock has an IBD Composite Rating of 92 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
