Alibaba (NYSE:BABA) helped lift shares in Hong Kong to a three-year high Friday, as investors piled into Chinese tech names on a swelling artificial intelligence narrative since DeepSeek’s announcement in late January. Since then, the Hang Seng Index has rallied 16% to its highest since 2022, bolstered by a number of major tech stocks and some positive earnings stories.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
BABA on the Up
After BABA rose 8% in New York on Thursday following a strong quarterly earnings update, Alibaba’s Hong Kong listing (HK:9988) rose 15% to hit its highest since late 2021 as CEO Eddie Wu said the company would invest “aggressively” in AI infrastructure.
“Our planned investment in cloud and AI infrastructure over the next three years is set to exceed what we have spent over the past decade,” he told analysts on a call. Wu added that the next three year would see “the most concentrated and highest level of investments in building out our cloud and AI-related infrastructure.”
Alibaba was also boosted as GameStop (GME) CEO and Chewy (CHWY) founder Ryan Cohen increased his stake to approximately $1 billion, according to The Wall Street Journal.
Chinese tech stocks have been rallying since AI startup DeepSeek ripped up assumptions about the U.S.-dominated AI ecosystem with its R1 model, with claims of it delivering better performance at a fraction of the cost.
China Tech Stocks Rally
BABA was not the only Chinese tech stock on the up as Lenovo (HK:0992), the world’s largest PC maker, rallied 15%, having reported a 20% rise in quarterly sales, driven by robust demand for its AI-powered servers. Net profit more than doubled to $693 million, well ahead of the forecast $367.7 million. Lenovo (LNVGF) also said it stands to benefit from the adoption of DeepSeek’s AI models in its products.
Search engine giant Baidu (HK:9888) also rose 5% as it bounced back after declining this week on earnings that underlined how its internet search and AI is straining in the face of heightened competition. Baidu trades under the ticker (BIDU) in New York.
Chipmakers got in on the act as Semiconductor Manufacturing International Corporation (HK:0981) rose almost 8%. Telecom group China Unicom (HK:0762) rose over 15%.
What Are the Best Chinese Stocks to Buy?
For investors interested in investing in Chinese stocks, we have rounded up the best stocks that analysts are bullish about using the TipRanks Stock Comparison Tool.
