Alibaba’s US-listed shares are on a five-day winning streak, extending their rally after reports that the Chinese tech giant is partnering with Apple to create artificial intelligence features for its products in China. The companies have submitted AI-developed features to Chinese regulators for approval, which could take several months.
Analysts believe this partnership and rollout of AI features in China can boost iPhone sales in the country. With upgrades being more common in regions where the AI features are launched, such as the US, Apple’s slowdown in China can be reversed. The deal also allows Apple to access Alibaba’s collected data through its e-commerce offerings for more personalized AI products.
Alibaba shares rose 5% on Wednesday to their highest level in over two years, gaining over 60% in the past year. Apple shares increased 1.8% and have risen by over 25% in the last 12 months. Jefferies analysts lifted their price target to $150 from $144 without mentioning the reported partnership. JPMorgan analysts expect significant progress for Apple with this rollout, potentially boosting sales of upcoming iPhone models later this year.
Source: https://www.investopedia.com/alibaba-stock-jumps-reported-apple-ai-partnership-11678651