Qwen’s Quiet Rise: Investing in Alibaba Beyond the AI Hype

I recently purchased 100 shares of Alibaba ADR amid the noise surrounding the AI bubble and just post the Bank of Japan’s policy meeting. Looking ahead, I believe this purchase sits within a long-term valuation trough.

First, I see Alibaba as a genuine leader in the AI era.

Unlike many that rushed to mimic ChatGPT, Qwen emerged organically—from real business needs and steady evolution. Alibaba began in e-commerce. As its operations scaled, it realized that relying on third-party software would mean ceding most of its gross profits to tech vendors. So, it built its own systems.

When transaction volumes grew too large for local servers to handle efficiently, Alibaba developed its own cloud infrastructure. Recognizing the broader value of this solution, it began offering cloud services to external clients. Over time, internal tools designed to boost productivity and customer satisfaction were refined, integrated, and evolved—eventually becoming the AI model now known as Qwen.

Qwen was officially launched to the public in November 2025. Today, AI and Cloud have become Alibaba’s second growth engine.

In my view, Qwen is like a child from a hardworking middle-class family—from a young age, she’s taken on all kinds of responsibilities to help the household thrive.  

By contrast, ChatGPT is like a child from a billionaire family—lavishly funded, trained with the world’s best resources, and now being told by its “gold father,” “You’ve learned so much—go earn some money back.”But frankly, I doubt ChatGTP will ever recoup its enormous “tuition fees.”

Second, this position serves a tactical purpose: covered calls. 

I’ve set my strike price 10% above Monday’s market price—targeting a lower premium and a low probability of assignment. This generates modest but reliable weekly income, amounting to roughly 3% annualized yield. While not transformative, it adds a layer of disciplined engagement and routine enjoyment to investing. Long-term value investing doesn’t have to be boring.

Third, I’ve already tested Alibaba through other instruments—including the SGX-listed HBBD SRD—and have accumulated decent unrealized gains, even after the stock pulled back from its previous highs.