Alibaba stock (BABA) traded higher on Friday, posting a notable gain. This movement stemmed from a surge in investor optimism across Chinese technology stocks. The positive sentiment is driven by ongoing artificial intelligence developments and supportive government initiatives within the sector.
The rally was further influenced by competitor Baidu. Baidu announced plans to spin off its AI chip unit, Kunlunxin. The unit will be separately listed on the Hong Kong Stock Exchange.
This development boosted confidence across the broader Chinese technology market. Alibaba's stock gained in sympathy with the wider trend.