Chinese AI Capabilities Are Strengthening Faster Than Market Caps
While the investing minds are occupied en masse by Donald Trump's MAGA tariff agenda, I would like to draw your attention to a simple fact that there are other hot topics that you can look at. It's actually hard in advance to determine if the new set of tariffs would make America great and more sustainable to trade imbalances or weak and exposed to higher import prices, but the tariff changes certainly won't crash either the US or global economy. At the same time, discounted prices on particular businesses that have their own positive fundamental drivers may not be repeated anytime soon.
As an example, I pointed out about that the Chinese-rooted Alibaba stock was going to crawl into a higher range, where the technical support levels could be located between $115 and $120 per share. The e-commerce giant's transition to a new quality followed solid sales figures from the previous quarter and a preliminary announcement of additional investments in cutting-edge AI features. Right now, as Alibaba Group Holdings ADRs on NYSE have already retreated from mid-March peaks at nearly $150 per share, making attempts to slide below $130 with a high chance to temporarily dip further toward key support levels on the back of this general tariff correction, the AI advancements for Alibaba are getting new and timely confirmations.
Alibaba managers shared a plan of preparing to launch an improved version of its primary AI model, named Qwen 3, as soon as "later this month". The exact date is still uncertain but it is not very important, I guess. Sources "close to the matter" also reported on Bloomberg that the new large language model's capability of processing text, pictures, audio, and video description of goods and other content for consumers would operate even more effectively on smartphones than the previous Qwen 2.5, which had been introduced only last week. A new version of the AI assistant Quark app was also launched in March. The AI progress becomes speedier to help Alibaba in its competition with OpenAI rivals.
A surge of lower cost AI services from China’s is throwing down the gauntlet to US companies including Google-parent Alphabet, Amazon and Microsoft. Since all three of the listed above leading companies in the cloud sphere have been in my portfolio for a long time, I would like to take advantage of the buying opportunity and put Alibaba stock there as well as soon as the price may fall into a narrow corridor below $130 but above $120.
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