Alibaba Shares up 65% Annually as Joe Tsai Says ‘Confidence and Sentiment’ Will Revive China’s Consumers

• Alibaba shares have increased over 65% in the past twelve months.
• The increase comes as the company has put artificial intelligence as the focal point of its strategy.
• Chairman Joe Tsai said consumer confidence is needed to get China spending again.

Alibaba’s shares have increased over 65% this year, with Chairman, Joe Tsai, remarking that “confidence and sentiment” is the key to getting China’s population spending back.

The comments follow a meeting between China’s President Xi Jinping and leading tech executives.

Alibaba’s Share Increase

Alibaba’s overall annual share rise aligns with Alibaba’s intention to make Artificial General Intelligence (AGI) its main strategy.

In February 2025, CEO Eddie Wu told investors on a call that the “pursuit of Artificial General Intelligence” was the company’s main objective.

Alibaba’s shares increased further last week after the company released a deep reasoning model, which it claimed could rival China’s global hit DeepSeek.

On top of this, Alibaba’s cloud business has recorded its fastest growth in over two years.

On a recent earnings call, Wu told analysts that AI was an opportunity that “only comes about once every several decades.”

Alibaba Chairman Believes Chinese Consumers Need Confidence

Alibaba chair Joe Tsai believes China is in a good position to rebuild its fledgling economy, but consumers need more confidence.

“[The] household balance sheet is very strong. You’re looking at over $20 trillion of bank deposits by households, so they’re standing on the sidelines waiting to spend,” Tsai told CNBC’s Converge conference on Wednesday, March 12.

Tsai said China’s consumers need “confidence and sentiment” to start spending again, referencing a recent meeting between Chinese President Xi Jinping and domestic business leaders.

“People underestimate the importance of that meeting,” Tsai added. “Business people need confidence to make investments in their business”.

China’s AI Focus

Tsai’s comments follow China’s government dedicating a new fund to emerging technology industries, including humanoid robots, 6G, and AI.

The fund is set to raise up to  1 trillion yuan ($138 billion) in capital over 20 years from the private sector and local governments.

“Scenes once only seen in science fiction are now becoming reality. We are steadily moving toward the global frontiers of technology and innovation,” Zheng Shanjie, China’s state economic planner head, told reporters on Thursday, March. 6.

“This proves that the suppression and blockade attempt by certain forces only serve to accelerate our drive for independent innovation,” he added, referencing the export controls imposed by the U.S.

Over the past few years, China has suffered through uneven growth, high levels of deflation and a fierce property crisis due to declining demand.

This has pushed the government to seek new models for growth.