Alibaba (BABA) stock more than doubled in the first nine months of 2025 as several Chinese stocks roared back thanks to the artificial intelligence (AI) boom. However, BABA stock quickly topped out and has since fallen 45% from its 52-week high of $191.07.
The company itself has been making steady gains behind the scenes as Chinese AI labs play the long game. Alibaba recently announced its Zhenwu V900 AI chip on Sept. 22. This chip is reportedly three times faster than Alibaba's previous chip and targets 20 gigawatts of global data-center capacity by 2032. Alibaba says these chips will enter mass production as early as the first quarter of 2027.