The Long Investor
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$BABA TOP 10 & TOP 20
🕑 Added 2025-05-06 11:08:29 +0000 UTC$BABA is up +1.5% in the PM now after a very positive Ai Cloud remark from Nomura:
Chinese cloud-computing providers' 2025 capital expenditure could rise more than 50% amid accelerated AI spending, Nomura analysts say. That would outperform their global peers' capex growth, which is estimated to rise 40%, the analysts say.
Chinese cloud service providers could benefit from pent-up demand for cloud and AI computing power, driven by large-language-model upgrades and innovative generative AI applications, such as AI agent and Copilot, they say.
Nomura thinks that the key focus of China's CSPs should be on improving margins by expanding into higher-value business segments. While the tariff impacts are unlikely to directly hurt cloud companies' businesses, export controls on Nvidia's H20 chips and the risk of Chinese ADR delistings could act as an overhang, they say. Nomura's top picks are Alibaba and GDS Holdings.
For us, this has provided a break above the 50 Day MA and the price is already at $128.70 in the PM.
$BABA continues to move as expected and following our count.
The previous higher was at $148, a move up to this level next looks good.
