Nomura: Alibaba-W (09988) adjusted net profit forecast for the 2027 fiscal year increased by 7%

The Zhitong Finance App learned that Nomura released a research report saying that it is expected that Alibaba (09988) (BABA.US)'s upcoming results for the 2027 second fiscal quarter will further highlight its artificial intelligence (AI) strategy layout. The bank raised Alibaba's adjusted net profit forecast for fiscal year 2027 by 7%, mainly due to an increase in e-commerce business profit expectations. The bank gave Alibaba a “buy” investment rating and target price of $178.

Nomura indicated that Alibaba is further focusing on AI and cloud business. After attending Alibaba's annual cloud conference, the bank is more confident about the future of its AI cloud business. In China's AI ecosystem, few companies can have such a stable advantage in almost every key link in the AI value chain — including chips, infrastructure, models, and AI applications — like Alibaba.

The exchange between Nomura and Alibaba further confirmed its view: management has skewed its focus on the AI cloud business, which is gradually becoming an important engine for revenue growth; at the same time, the company is paying more attention to the profitability of other business segments, with the aim of reserving cash flow for investment in the AI field.