Jefferies has raised its target price for Alibaba Group (NYSE: BABA) stock to $156 from $150, and its Hong Kong-listed shares to HK$151 from HK$145. This upgrade comes shortly after Alibaba Chairman Joe Tsai confirmed the company’s collaboration with Apple (NASDAQ: AAPL) to develop and launch artificial intelligence (AI) features for iPhones in China.
The partnership marks a significant win for Alibaba as it strengthens its position in China’s competitive AI landscape, which also includes emerging players like DeepSeek. DeepSeek has made waves this year by developing AI models at a much lower cost than their Western counterparts.
For Apple, the collaboration resolves months of speculation over its AI strategy in China. Apple had been in discussions with several Chinese tech leaders, including Baidu (NASDAQ: BIDU), ByteDance, and Tencent, before ultimately choosing to partner with Alibaba.
Tsai expressed pride in the partnership during the World Government Summit in Dubai, stating,
“They talked to a number of companies in China. In the end, they chose to do business with us. They want to use our AI to power their phones. We feel extremely honored to do business with a great company like Apple.”
The collaboration announcement comes amid reports suggesting Apple has submitted AI features—developed in collaboration with Alibaba (NYSE: BABA)—for approval to China’s cyberspace regulator.
