BABA-W (09988.HK)(BABA.US)’s Chairman Joseph Tsai had earlier confirmed the cooperation between the company and Apple (AAPL.US) to bring Alibaba's AI capabilities to the iPhone 16 series and subsequent models, subject to approval from the relevant regulatory units, local media reported.

Citi said in a research note that the partnership with Alibaba will enable Apple to offer a localized version of Apple Intelligence in China to conform with regulatory requirements. Moreover, Alibaba's selection by Apple is a testament to the company's advancement in AI modeling and technology capabilities.

In addition to the licensing terms, Alibaba may also ride on an influx of app developers who will be upgrading or releasing their AI-related apps on their iPhones and considering Tongyi Qianwen or Alibaba Cloud as their model or cloud service of choice, which could open up unlimited AI or Cloud-related monetization opportunities, Citi envisioned.

Despite Alibaba's robust share price performance in the past few weeks, the broker believed that there is still upside for Alibaba's share price in light of the future adoption of Tongyi Qianwen or Alibaba Cloud services. Hence, it reiterated its Buy rating on Alibaba's US and HK shares and maintained its target prices at USD138 and HKD137, respectively.
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AAStocks Financial News
Web Site: www.aastocks.com

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