By Zacks Equity Research
Publication Date: 2026-05-25 16:22:00
Alibaba BABA believes increasing AI cloud demand could become the key driver of company growth in fiscal 2027 as commercialization of its AI infrastructure and model services gains momentum. In the fourth quarter of fiscal 2026, Cloud Intelligence Group’s external revenue growth accelerated 40% year-over-year, supported by triple-digit AI-related revenue growth for the 11th consecutive quarter. AI products now account for nearly 30% of external cloud revenue and this share is expected to exceed 50% within a year.
On May 20, Alibaba unveiled a full-stack AI upgrade at its Alibaba Cloud Summit in Hangzhou, introducing the Qwen3.7-Max large language model, the Zhenwu M890 AI chip and the Panjiu AL128 Supernode Server for large-scale AI training and inference. The company mentioned that Qwen3.7-Max ran autonomously for 35 hours and made more than 1,000 tool calls in the benchmark test. Alibaba also introduced the Zhenwu V900 and Zhenwu J900 chips, scheduled for…
