(1) After a sharp Golden Dragon surge, is this the start of a sustained China tech uptrend?: The case for a durable re-rating phase in Chinese tech stocks is underpinned by a new expansion phase in Chinese economy, policy shifts favoring productivity and innovation & a structural reallocation of domestic household savings from property and deposits into equities. Foreign capital inflows amid a potentially weaker US dollar in 2026 also support this scenario. So, there is indeed a case for optimism or at least optimistic aggression.
(2) How much upside is left for names like Alibaba?: Growth in $Alibaba(BABA)$ cloud computing and AI segments is expected to be main drivers of its performance in 2026. Goldman Sachs has raised its target price and significantly increased its capital expenditure forecast for Alibaba Cloud, citing strong demand for AI services and progress in self-developed inference chips. Despite strong 2025 performance when its shares surged over 77%, please note that Chinese equities, including Alibaba, still trade at a discount compared to their U.S. peers. The market capitalization of Chinese AI stocks is still a fraction of their global counterparts suggesting substantial growth potential remains.
So, overall like they say in NASA, keep looking up!
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