If you thought the global AI race was settled in favour of the familiar names, take a second look—Alibaba Group Holding just raised the stakes.
Alibaba’s latest move is all about its large language model series called Qwen, developed by its cloud division. Qwen is no modest ambition: Alibaba itself claims that some versions outperform leading open-source models in maths and coding benchmarks. 
The market took notice. When the deal was revealed, Alibaba’s shares climbed. Investors see opportunity—if Alibaba can turn its AI advantage into revenue, its valuation upside could be meaningful. And the key question becomes: could this elevate the stock back toward $190?
What Exactly Is Qwen?
Qwen is a family of AI models built by Alibaba Cloud. They support multiple languages, multimodal inputs (text, images, video) and are actively being improved.  In February 2025, for example, Alibaba revealed Qwen-2.5 and later Qwen-3, with claims of strong performance versus global rivals. 
The bigger point is this: Alibaba isn’t just aiming to keep up in AI. It’s aiming to lead in certain areas. Qwen models are used internally across Alibaba’s cloud, e-commerce, digital payments and consumer apps. That means the opportunity isn’t hypothetical—it’s integrated into a massive ecosystem.
How This Could Trigger a $BABA Re-Rating
Here’s where the valuation story kicks in. Alibaba’s share price has faced headwinds from regulation, economic softness in China, and concerns about its growth trajectory. But the Qwen narrative offers a fresh lens.
If Alibaba can monetize its AI leadership—via cloud services, enterprise sales, generative AI tools for third parties—it could unlock new growth segments. Given that the broader market is willing to pay up for AI-exposed companies, Alibaba’s pivot to Qwen becomes meaningful.
Let’s assume Alibaba executes and achieves a growth acceleration that tempers concerns about China’s macro outlook. That combination of execution and narrative could spark investor confidence and push the stock toward $190. On the flip side, if Qwen rolls out slowly or fails to monetize fast, the upside may remain limited.
Where Things Could Trip Up
No story of breakout potential is without risk. Alibaba’s AI push faces fierce competition—both domestic and global. Other Chinese players, U.S. cloud providers and open-source communities are all fighting for attention. The AI model hype is high, but monetization often lags.
Moreover, China’s economy remains uneven. Slower consumer spending, regulatory surprises or global trade pressures could offset AI optimism. And even if Qwen works, converting that into meaningful revenue in the next 12-18 months is a major task.
The Bottom Line
Alibaba’s Qwen initiative is one of the most interesting repositionings in tech this year. If executed well, it could change how investors value the company. A $BABA move toward $190 is not guaranteed, but it is plausible—especially if Qwen begins to show real business outcomes rather than just promise.
For investors willing to look beyond near-term headwinds and focus on strategic transformation, Alibaba offers an intriguing entry point. The key will be watching for signs that Qwen isn’t just a technology announcement, but a revenue engine in motion.
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