Citi: Implications of Alibaba's Qwen 3.8 Max Preview and Moonshot's Kimi K3 Launch
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Key Views
The proliferation of open-weight models is driving enterprises toward multi-model strategies, selecting models based on task performance and pricing rather than locking into a single vendor. This trend erodes single-model moats, shifting competitive focus toward platforms and infrastructure capable of seamlessly hosting, integrating, and managing diverse models. Citi favors full-stack vendors spanning chips, cloud infrastructure, models, and applications. The market may underestimate the full-stack capabilities of Alibaba and Baidu, as well as Tencent's real-world AI application value through WorkBuddy and upcoming WeChat agentic AI.
Recommended Securities
Citi maintains a Buy on Alibaba (BABA.N) with a USD 192 target price, implying 67.0% price return, 1.7% dividend yield, and 68.7% total return. The Hong Kong-listed shares (9988.HK) carry a Rating 1 with a HKD 191 target.
Key exhibits
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