ARK Places Its Bet on Alibaba's AI-Powered Cloud Revival Following a Four-Year Break

ARK Invest has resumed its investment in

Holding Ltd. (NYSE: BABA) after a four-year hiatus, allocating about $16.3 million through two of its exchange-traded funds (ETFs) on September 22, 2025. This action signals the firm’s renewed interest in Chinese internet companies, following a period of reduced exposure after regulatory crackdowns in 2021 and 2022. The timing aligns with Alibaba’s stock reaching its highest levels in years, fueled by positive sentiment around its artificial intelligence (AI) advancements and cloud business expansion Cathie Wood buys Alibaba after four years in China comeback [ 1 ].

On September 23, Alibaba’s American depositary receipts (ADRs) climbed to their strongest point since November 2021, nearly doubling in value since the start of the year. The surge is attributed to the company’s AI-powered cloud offerings and significant investments in AI infrastructure, including a $100 billion pledge to research and development and cloud technology Cathie Wood buys Alibaba after four years in China comeback [ 1 ]. ARK’s re-entry into Alibaba is consistent with its emphasis on innovative technologies, a core principle of founder Cathie Wood’s investment philosophy. The firm also boosted its holdings in

Inc. (NASDAQ: BIDU) to $47 million, further demonstrating its confidence in China’s technology industry Cathie Wood buys Alibaba after four years in China comeback [ 1 ].

Among ARK’s ETFs,

ETF (ARKK) and Next Generation Internet ETF (ARKF) have traditionally focused on fast-growing tech sectors. Despite experiencing $438 million in net outflows in 2025, the firm remains optimistic about AI and cloud computing, areas where and Baidu play leading roles Cathie Wood buys Alibaba after four years in China comeback [ 1 ]. The decision to invest in Alibaba is a strategic one, as the company continues to navigate regulatory challenges in China and global tensions impacting technology investments. Notably, Alibaba’s cloud segment posted a 26% year-over-year revenue increase for the April–June quarter, with AI-related products achieving triple-digit growth for eight straight quarters Cathie Wood buys Alibaba after four years in China comeback [ 1 ].

ARK’s broader holdings also include smaller investments in firms such as Pony AI Inc. and JD Logistics, though these are secondary to its main focus on AI and cloud infrastructure Cathie Wood buys Alibaba after four years in China comeback [ 1 ]. The firm’s approach mirrors a wider movement among institutional investors who are returning to Chinese tech stocks after a period of caution. Since the beginning of 2025, Alibaba’s market value has almost doubled to $392.8 billion, surpassing the Hang Seng Index’s 32.33% rise over the same timeframe Cathie Wood buys Alibaba after four years in China comeback [ 1 ]. Experts credit Alibaba’s outperformance to its dominance in cloud computing, holding a 33% market share in China, and its global e-commerce expansion through platforms like AliExpress Cathie Wood buys Alibaba after four years in China comeback [ 1 ].

Although ARK’s investment reflects renewed optimism in Alibaba’s future, there are still significant risks. Ongoing regulatory scrutiny in China, trade disputes between the U.S. and China, and competition from companies such as JD.com and PDD Holdings could affect profitability. Furthermore, Alibaba’s main e-commerce segment is experiencing margin pressure due to substantial spending on “quick commerce” projects, which aim to deliver goods within an hour in China’s smaller cities Cathie Wood buys Alibaba after four years in China comeback [ 1 ]. Despite these headwinds, ARK’s investment highlights its confidence in Alibaba’s capacity to harness AI and cloud technology for long-term growth, even as it manages short-term costs against broader strategic ambitions Cathie Wood buys Alibaba after four years in China comeback [ 1 ].