Alibaba Launches Qwen-3.5 AI Model, Intensifying US-China AI Rivalry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 hours ago
0mins
Should l Buy BABA?
Source: Benzinga
- AI Model Launch: Alibaba launched its latest AI model, Qwen-3.5, on Monday, showcasing significant advancements despite having fewer parameters than its predecessor, Qwen-3-Max-Thinking, thereby intensifying the rivalry between the US and China in the AI sector.
- Open Source Advantage: The closed-source version, Qwen-3.5-Plus, features a context window of 1 million tokens, marking it as one of the largest in the industry, highlighting Alibaba's strategic focus on open-source AI to accelerate development and reduce costs for developers.
- Surging Download Metrics: The Qwen models have surpassed 700 million downloads on Hugging Face, becoming the most widely adopted open-source AI system, reflecting Alibaba's open strategy aligned with its 2025 AI vision that emphasizes openness and collaboration to foster innovation.
- Optimistic Market Outlook: Analysts noted that Qwen-3.5's performance has exceeded expectations, matching leading models from major US companies, and Alibaba's cloud business is well-positioned for sustained growth amid strong AI demand, prompting analysts to upgrade their outlook on the company.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BABA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 155.730
Low
180.00
Averages
203.09
High
230.00
Current: 155.730
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amazon Stock Rebounds, Ending Nine-Day Losing Streak
- Stock Rebound: Amazon (AMZN) closed at $201.15 on Tuesday, up 1.19%, marking the end of a nine-day losing streak driven by concerns over its $200 billion AI investment plan, restoring market confidence in its growth prospects.
- Surge in Trading Volume: The trading volume reached 67.9 million shares, approximately 43% above the three-month average, indicating heightened investor interest and confidence in Amazon's future developments.
- Significant AWS Contribution: Amazon Web Services (AWS) saw a 24% revenue increase in Q4, contributing $128 billion to Amazon's total $717 billion revenue last year, underscoring its strong position in the cloud services market.
- Investment Outlook Analysis: Despite the massive capital expenditure plan, investors are weighing Amazon's growth potential against AWS's profitability, reflecting trust in the company's long-term strategic direction.
See More
David Tepper Doubles Down on Semiconductor Investment
- Semiconductor Investment Boost: David Tepper's Appaloosa Management aggressively added 1 million shares of Micron Technology (NASDAQ:MU) during the quarter, bringing its total holdings to 1.5 million shares valued at over $428 million, indicating strong confidence in the semiconductor sector's recovery.
- Tech Giants Trimmed: Despite the reductions, Alibaba remains Appaloosa's largest single holding at 10.88% of the total portfolio, down from 15.61% in the previous quarter, reflecting a cautious stance on Chinese tech stocks.
- Amazon and Nvidia Reductions: Appaloosa trimmed its stake in Amazon (NASDAQ:AMZN) by approximately 320,000 shares, a 12.8% decrease, while also reducing Nvidia (NASDAQ:NVDA) by 10.5%, liquidating 200,000 shares, indicating Tepper's strategic adjustments in response to market dynamics.
- Shifting Investment Strategy: Tepper appears to be moving “down the stack,” focusing on hardware components that drive AI rather than chip designers, showcasing a reassessment of hardware value and optimism about future growth potential.
See More
Alibaba Under Investigation for Securities Law Violations
- Stock Price Decline: Following a Financial Times report alleging Alibaba's assistance to the Chinese military, the company's shares fell by $6.04, or 3.78%, to close at $153.80 on November 14, 2025, indicating market concerns over compliance issues.
- Military Connection Allegations: A White House memo claims Alibaba provides capabilities to the People's Liberation Army that threaten U.S. security, including access to customer data such as IP addresses and payment records, which could further erode investor confidence.
- Pentagon List Fluctuation: On February 13, 2026, the Pentagon added Alibaba to a list of companies aiding the Chinese military but retracted it minutes later without explanation, creating uncertainty that may exacerbate negative sentiment towards Alibaba in the market.
- Investor Rights Affected: Due to these events, Alibaba's stock price fell nearly 4% during intraday trading on February 13, 2026, further harming investors and prompting law firms to investigate potential claims for recovery of losses.
See More
The Pentagon is Monitoring These Chinese Companies, and Investors Should Take Note.
Author Background: Jonathan E. Hillman is a senior fellow for geoeconomics at the Council on Foreign Relations and has authored "The Digital Silk Road: China’s Quest to Wire the World and Win the Future."
Focus on Geoeconomics: Hillman's work emphasizes the intersection of economics and international relations, particularly in the context of China's global influence through digital infrastructure.
See More
Apple to Integrate Video into Podcasts Amid Growing Demand
- Video Podcast Integration: Apple announced it will soon integrate video into its podcast app, responding to the growing demand as 37% of people over 12 watch video podcasts monthly, aiming to enhance user experience and align with competitors like Spotify.
- Product Launch Teaser: This video feature serves as a teaser ahead of a larger product launch on March 4, which is rumored to include new MacBook and iPad models, demonstrating Apple's ongoing commitment to innovation despite competitive pressures in the tech market.
- Market Reaction Analysis: While Apple's brand loyalty remains strong, analysts express concerns about its plans to update Siri, suggesting it may not compete effectively with AI chatbots from OpenAI and Google, potentially impacting investor confidence in Apple's future growth.
- Overall Market Dynamics: Amid AI-induced market panic, the S&P 500 fell 1.85% last week, with the Nasdaq dropping 2.98%, indicating pressure on tech stocks, as investors closely watch the upcoming AI impact summit for insights into future developments.
See More
Alibaba Launches Qwen-3.5 AI Model, Intensifying US-China AI Rivalry
- AI Model Launch: Alibaba launched its latest AI model, Qwen-3.5, on Monday, showcasing significant advancements despite having fewer parameters than its predecessor, Qwen-3-Max-Thinking, thereby intensifying the rivalry between the US and China in the AI sector.
- Open Source Advantage: The closed-source version, Qwen-3.5-Plus, features a context window of 1 million tokens, marking it as one of the largest in the industry, highlighting Alibaba's strategic focus on open-source AI to accelerate development and reduce costs for developers.
- Surging Download Metrics: The Qwen models have surpassed 700 million downloads on Hugging Face, becoming the most widely adopted open-source AI system, reflecting Alibaba's open strategy aligned with its 2025 AI vision that emphasizes openness and collaboration to foster innovation.
- Optimistic Market Outlook: Analysts noted that Qwen-3.5's performance has exceeded expectations, matching leading models from major US companies, and Alibaba's cloud business is well-positioned for sustained growth amid strong AI demand, prompting analysts to upgrade their outlook on the company.
See More
Amazon Stock Rebounds, Ending Nine-Day Losing Streak
- Stock Rebound: Amazon (AMZN) closed at $201.15 on Tuesday, up 1.19%, marking the end of a nine-day losing streak driven by concerns over its $200 billion AI investment plan, restoring market confidence in its growth prospects.
- Surge in Trading Volume: The trading volume reached 67.9 million shares, approximately 43% above the three-month average, indicating heightened investor interest and confidence in Amazon's future developments.
- Significant AWS Contribution: Amazon Web Services (AWS) saw a 24% revenue increase in Q4, contributing $128 billion to Amazon's total $717 billion revenue last year, underscoring its strong position in the cloud services market.
- Investment Outlook Analysis: Despite the massive capital expenditure plan, investors are weighing Amazon's growth potential against AWS's profitability, reflecting trust in the company's long-term strategic direction.
See More
David Tepper Doubles Down on Semiconductor Investment
- Semiconductor Investment Boost: David Tepper's Appaloosa Management aggressively added 1 million shares of Micron Technology (NASDAQ:MU) during the quarter, bringing its total holdings to 1.5 million shares valued at over $428 million, indicating strong confidence in the semiconductor sector's recovery.
- Tech Giants Trimmed: Despite the reductions, Alibaba remains Appaloosa's largest single holding at 10.88% of the total portfolio, down from 15.61% in the previous quarter, reflecting a cautious stance on Chinese tech stocks.
- Amazon and Nvidia Reductions: Appaloosa trimmed its stake in Amazon (NASDAQ:AMZN) by approximately 320,000 shares, a 12.8% decrease, while also reducing Nvidia (NASDAQ:NVDA) by 10.5%, liquidating 200,000 shares, indicating Tepper's strategic adjustments in response to market dynamics.
- Shifting Investment Strategy: Tepper appears to be moving “down the stack,” focusing on hardware components that drive AI rather than chip designers, showcasing a reassessment of hardware value and optimism about future growth potential.
See More
Alibaba Under Investigation for Securities Law Violations
- Stock Price Decline: Following a Financial Times report alleging Alibaba's assistance to the Chinese military, the company's shares fell by $6.04, or 3.78%, to close at $153.80 on November 14, 2025, indicating market concerns over compliance issues.
- Military Connection Allegations: A White House memo claims Alibaba provides capabilities to the People's Liberation Army that threaten U.S. security, including access to customer data such as IP addresses and payment records, which could further erode investor confidence.
- Pentagon List Fluctuation: On February 13, 2026, the Pentagon added Alibaba to a list of companies aiding the Chinese military but retracted it minutes later without explanation, creating uncertainty that may exacerbate negative sentiment towards Alibaba in the market.
- Investor Rights Affected: Due to these events, Alibaba's stock price fell nearly 4% during intraday trading on February 13, 2026, further harming investors and prompting law firms to investigate potential claims for recovery of losses.
See More
The Pentagon is Monitoring These Chinese Companies, and Investors Should Take Note.
Author Background: Jonathan E. Hillman is a senior fellow for geoeconomics at the Council on Foreign Relations and has authored "The Digital Silk Road: China’s Quest to Wire the World and Win the Future."
Focus on Geoeconomics: Hillman's work emphasizes the intersection of economics and international relations, particularly in the context of China's global influence through digital infrastructure.
See More
Apple to Integrate Video into Podcasts Amid Growing Demand
- Video Podcast Integration: Apple announced it will soon integrate video into its podcast app, responding to the growing demand as 37% of people over 12 watch video podcasts monthly, aiming to enhance user experience and align with competitors like Spotify.
- Product Launch Teaser: This video feature serves as a teaser ahead of a larger product launch on March 4, which is rumored to include new MacBook and iPad models, demonstrating Apple's ongoing commitment to innovation despite competitive pressures in the tech market.
- Market Reaction Analysis: While Apple's brand loyalty remains strong, analysts express concerns about its plans to update Siri, suggesting it may not compete effectively with AI chatbots from OpenAI and Google, potentially impacting investor confidence in Apple's future growth.
- Overall Market Dynamics: Amid AI-induced market panic, the S&P 500 fell 1.85% last week, with the Nasdaq dropping 2.98%, indicating pressure on tech stocks, as investors closely watch the upcoming AI impact summit for insights into future developments.
See More
Alibaba Launches Qwen-3.5 AI Model, Intensifying US-China AI Rivalry
- AI Model Launch: Alibaba launched its latest AI model, Qwen-3.5, on Monday, showcasing significant advancements despite having fewer parameters than its predecessor, Qwen-3-Max-Thinking, thereby intensifying the rivalry between the US and China in the AI sector.
- Open Source Advantage: The closed-source version, Qwen-3.5-Plus, features a context window of 1 million tokens, marking it as one of the largest in the industry, highlighting Alibaba's strategic focus on open-source AI to accelerate development and reduce costs for developers.
- Surging Download Metrics: The Qwen models have surpassed 700 million downloads on Hugging Face, becoming the most widely adopted open-source AI system, reflecting Alibaba's open strategy aligned with its 2025 AI vision that emphasizes openness and collaboration to foster innovation.
- Optimistic Market Outlook: Analysts noted that Qwen-3.5's performance has exceeded expectations, matching leading models from major US companies, and Alibaba's cloud business is well-positioned for sustained growth amid strong AI demand, prompting analysts to upgrade their outlook on the company.
See More
