Alibaba Group Holding Limited ( BABA ) shares climbed 2.4% to HK$140.60 ($18.05) on the Hong Kong Exchange on Tuesday, building momentum after the Chinese tech giant unveiled its most advanced artificial intelligence model to compete with OpenAI and Alphabet Inc. ( GOOG ) .

Qwen-3-Max AI Model Breakthrough

The Hangzhou-based company introduced Qwen-3-Max-Preview on Friday, featuring over 1 trillion parameters in its first model of this scale. The text-only AI system outperformed Alibaba’s previous flagship Qwen3-235B-A22B-2507 model in internal testing.

Parameters determine AI system intelligence and require extensive computational resources. The Qwen3 series, initially launched in May with models ranging from 600 million to 235 billion parameters, represents Alibaba’s strategic push into generative AI market leadership.

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Strong Fundamentals Drive Market Performance

Benchmark analysts highlighted strengthening fundamentals across Alibaba’s cloud computing and e-commerce segments. The company’s cloud unit delivered robust quarterly performance while its recent AI chip unveiling challenged Nvidia Corp. ( NVDA )‘s market dominance in China.

Alibaba’s P/E ratio of 16.68 and market capitalization of HK$2.60 trillion ($338 billion) reflect investor confidence in the company’s expansion into instant commerce, China’s highly competitive sector.

Strategic AI and Semiconductor Push

The tech giant’s new AI chip aims to reduce China’s reliance on U.S. semiconductor technology amid ongoing trade tensions. This homegrown technology initiative aligns with Beijing’s technology self-sufficiency goals and positions Alibaba ( BABA ) as China’s leading GenAI provider.

The company’s 0.73% dividend yield and trading range of HK$77.35-$145.90 over the past year demonstrate market volatility amid regulatory changes.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.