The Kaipher Editorial Team Shares of Alibaba and Marvell Technology rallied sharply Wednesday after each company unveiled bold actions to capitalize on the booming artificial intelligence market: Alibaba doubled down on AI infrastructure spending, while Marvell launched a massive stock repurchase program.
Alibaba Doubles Down on AI Leadership
At its annual Apsara Conference, Alibaba CEO Eddie Wu announced the company will exceed its earlier commitment of 380 billion yuan (~$53 billion) in AI infrastructure spending over three years, projecting global AI investment could top $4 trillion in the next five years (Investopedia).
Wu also unveiled a strategic partnership with Nvidia to integrate the latter’s Physical AI software stack into Alibaba Cloud, enabling AI model development for robotics, autonomous vehicles, and smart environments. Additionally, Alibaba introduced Qwen3-Max, its largest language model with over one trillion parameters—touting superior coding and autonomous-agent performance compared to rivals like Anthropic’s Claude. The company further announced plans to launch new data centers in Brazil, France, and the Netherlands to support global AI workloads (Yahoo Finance).
Alibaba shares closed nearly 10% higher, reaching a four-year high as investors welcomed the company’s accelerated AI investment and deepening collaboration with Nvidia amid ongoing US-China trade tensions.
Marvell Signals Confidence with Massive Buyback
Marvell Technology authorized a $5 billion stock repurchase program and immediately commenced a $1 billion accelerated share repurchase (ASR), representing nearly 10% of its $64 billion market capitalization (Yahoo Finance). Combined with prior authorizations, Marvell’s total buyback capacity now stands at approximately $6.7 billion.
Chairman and CEO Matt Murphy stated, “This ASR reflects our conviction in the business and the intrinsic value of our stock, as we drive sustained revenue and cash flow growth.” He highlighted Marvell’s data-center division—which now accounts for 74% of total revenue and has grown 69% year-over-year—as the primary beneficiary of its AI-focused strategy. The company recently sold its automotive Ethernet business for $2.5 billion to concentrate on AI and data-center markets.
Marvell shares jumped over 3%, reflecting investor confidence in the company’s shareholder-return initiatives and its positioning to profit from surging demand for AI infrastructure components.
Broader Market Momentum
The announcements fueled a broader AI-driven rally on Wall Street as investors weighed aggressive spending and buyback plans against uncertainties over Federal Reserve policy. Alibaba’s surge lifted other Chinese tech stocks—SMIC rose 5% and Hua Hong gained nearly 4%—while institutional investors, including Cathie Wood’s Ark Investment Management, reopened positions in Alibaba for the first time since 2021.
Together, Alibaba’s expanded AI investment and Marvell’s substantial buyback underscore the intensifying competition to lead the AI infrastructure race, following recent multibillion-dollar commitments from industry heavyweights like Nvidia and Microsoft.
