Alibaba Q1 mixed results as cloud AI lifts stock and AI chip unveiled

Alibaba Group reported mixed fiscal first quarter results for the June-ended quarter and saw its shares surge after investors focused on accelerating cloud and artificial intelligence revenue and reports the company has developed a new AI chip. The Hangzhou-based ecommerce and cloud giant said results were released Friday, and its dual-listed stock rallied sharply in New York that day and jumped more than 18 percent in Hong Kong on Monday.

Alibaba said adjusted earnings per American depositary share were 14.75 yuan, a decline of 10 percent from a year earlier but above analysts expectations. Total revenue rose about 2 percent year on year to roughly 247.7 billion yuan, slightly below some forecasts. The company’s Cloud Intelligence Group posted revenue of about 33.3 to 33.4 billion yuan, an acceleration to 26 percent growth from the prior quarter, and Alibaba said AI-related products drove heightened adoption of its cloud services. Company remarks and analyst notes said AI-related cloud revenue grew at a triple-digit rate for the eighth consecutive quarter.

While headline revenue growth was modest, several profit measures diverged. Income from operations decreased about 3...