Alibaba Group Holding shares climbed as much as 13.8% in Hong Kong trading on Wednesday, marking a significant intraday rally for the e-commerce and cloud giant.
The move reflects growing investor confidence that the company’s revenue growth will reaccelerate in the upcoming June quarter, reversing a period of slower expansion.
Equity analysts at UBS and Jefferies have projected that Alibaba’s revenue growth could accelerate to 9% in the June quarter, a substantial improvement from the 3% growth recorded in the previous period.
The optimism is anchored in expectations for stronger performance from Alibaba’s cloud computing division, particularly its T-Head semiconductor business.
Equity analysts at UBS and Jefferies have projected that Alibaba’s revenue growth could accelerate to 9% in the June quarter, a substantial improvement from the 3% growth recorded in the previous period.
This forecast suggests that demand for artificial intelligence services and proprietary chips is gaining traction within the company’s portfolio.
The rally in Alibaba contributed to a broader recovery in Chinese and Hong Kong equity markets.