Alibaba’s (NYSE:BABA) Hong Kong-listed shares soared almost 19% on Monday as the ongoing artificial intelligence (AI) boom powered strong growth in its cloud computing division amid growing competition in the global AI and cloud services market.
Revenue was up 2% year-over-year to RMB247,652 million ($34.6 billion), which was below the consensus expectation. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 10% year-over-year.
The e-commerce giant reported a triple-digit surge in revenue from AI-related products, along with a stronger-than-expected 26% increase in cloud division sales—the segment most directly connected to the ongoing artificial intelligence boom.
Separately, the Wall Street Journal reported that Alibaba (NYSE:BABA) has developed a new chip that is more versatile than its older chips.
Alibaba was long one of the biggest customers of U.S. tech giant Nvidia (NVDA). Now the company and other chip designers are filling the void left after Nvidia ran into regulatory hurdles to sell its products in China, the report added.