Alibaba Stock Gets A Price Target Boost From BofA – Check Out The Details

Alibaba Group Holding (BABA) shares on Wednesday witnessed a price target hike from Bank of America, with the firm revising its target on the stock to $195 from $168. BofA said it believes the company is positioned as the world's leading full-stack artificial intelligence services provider.

Shares of Alibaba jumped 7.3% in early trading on Wednesday, and the stock became the top-trending ticker on Stocktwits after media reports indicated that the company plans to expand its investment in artificial intelligence (AI), surpassing its prior expectations and commitments. 

Bank of America maintained a ‘Buy’ rating on the stock, according to TheFly, following the company hosting its annual event, the Apsara Conference. Alibaba is increasing investment to embrace the era of artificial superintelligence, the firm noted.

Retail sentiment on Alibaba jumped to ‘bullish’ from ‘bearish’ territory a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

According to CNBC, Alibaba CEO Eddie Wu said, “We are vigorously advancing a three-year, 380 billion [yuan] ($53.2 billion) AI infrastructure initiative with plans to sustain and further increase our investment according to our strategic vision in anticipation of the [artificial superintelligence] era.”

“The cumulative investment in global AI in the next five years will exceed $4 trillion, and this is the largest investment in computing power and research and development in history,” he added, according to the report.

Shares of Alibaba jumped nearly 107% this year. 

¥1 = $0.14

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