Alibaba Chair Says AI Total Addressable Market Is $10 Trillion, Expects Benefits Via Its Cloud Business

On Wednesday, Alibaba Group Holding BABA Chairman Joe Tsai voiced the possibility of artificial intelligence eliminating the need for equity research analysts while charting a Nvidia Corp NVDA or Apple Inc AAPL report at CNBC’s CONVERGE LIVE event in Singapore. 

Tsai told CNBC that AI could enhance the quality of work by taking care of tedious research-related tasks, enabling better recommendations from human minds instead of eliminating the analyst roles.

Tsai also said he expects AI to fundamentally change the practice of law. He expects AI to efficiently chart out a contract, enhancing lawyer judgment instead of eliminating it.

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He told CNBC that AI’s total addressable market is at least $10 trillion, making it bigger than industries like transportation and healthcare insurance.

Tsai expects Alibaba to benefit from this upsurge of AI thanks to its cloud computing business.

Tsai told CNBC that Alibaba could also benefit significantly from AI within its own business.

Recent reports indicated Alibaba’s XuanTie C930 processor’s potential to broaden domestic use of open-source chips built on the RISC-V instruction set architecture. The new XuanTie processors designed for AI acceleration, automotive applications, and high-speed interconnection will ship to clients in March.

Last week, Alibaba also launched a new reasoning model comparable to DeepSeek’s R1.

Alibaba was among the first major global tech companies to open-source its large-scale AI models. Over the next three years, Alibaba committed $53 billion to cloud and AI infrastructure.

Alibaba Stock Prediction For 2025

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Alibaba, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Alibaba Gr Hldgs, the 200-day moving average sits at $91.41, according to Benzinga Pro, which is below the current price of $139.02. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: BABA stock is down 0.35% at $138.54 premarket at last check Wednesday.

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