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Chinese multinational technology company Alibaba (BABA) built its empire on e-commerce dominance, reshaping how China shops online. But 2025 has not been a straight climb for BABA stock. After peaking in mid-March, shares stalled, weighed down by trade tensions, U.S. restrictions on artificial intelligence (AI) chip exports, and lingering questions about China’s economy.
Then came Q1 — and a sharp turn. Alibaba stock soared 13% after blowout cloud results and growing excitement around the firm's new custom AI chip, designed to bypass Nvidia (NVDA) curbs and power a wave of innovation. Add to that Alibaba's aggressive bets on China’s cutthroat “instant commerce” market, and investors are finally warming up again.