Baidu, Alibaba, Tencent rebound on China AI strength

Baidu was trading at $113.10 in the latest session, while Alibaba was at $127.40 and Tencent at HK$62.58, with all three still well below recent highs in some cases but showing signs of stabilization. Baidu’s 50-day moving average stood at $115.61, close to the stock’s last close, while its RSI reading of 53.6 suggested momentum had normalized after earlier overheating.

Alibaba’s technical profile points to renewed buying interest as well, with its RSI at 65.2 and its MACD above the signal line, a conventional sign that near-term momentum is improving. Tencent’s RSI of 60.3 and rising MACD also indicate the stock has regained some traction, reinforcing the broader rebound across Chinese AI-linked equities.

The sector’s resilience is important for investors because it offers one of the clearest ways to play China’s push to catch up in AI, particularly as policymakers encourage broader AI adoption across industries and push talent development from school level onward. That strategy has made AI a rare pocket of structural optimism in a market still weighed by property stress, uneven domestic demand and geopolitical friction.

The backdrop is also helping. Adalytica’s S&P 500 trade signals show “Extreme Greed” in U.S. equities, while its U.S. dollar signals also sit at “Extreme Greed,” a combination that can support global risk-taking even as it complicates the outlook for China assets through currency and capital-flow channels.

For now, the key question is whether the rebound in Chinese AI names can broaden beyond the marquee internet groups into semiconductors, cloud and applications. That will likely hinge on the next policy signals from Beijing, fresh earnings guidance from major tech firms and whether global investors keep rewarding AI exposure despite cross-border tensions.