Key Takeaways Alibaba's U.S.-listed shares extended their recent rally into Wednesday after it was reported that Apple is partnering with the Chinese company.The companies have submitted to Chinese regulators Alibaba-developed AI features to allow Apple to release Apple Intelligence products in China,

The stock of tech giant Alibaba — whose shares had been beaten down since Beijing's yearslong Big Tech regulatory crackdown — has soared 38% this year so far in Hong Kong. The stock's dual listing on the New York Stock Exchange is up 33%.

Alibaba faces a lot of formidable challenges, but it will likely remain China's top e-commerce and cloud company for the foreseeable future. If you expect it to weather the near-term headwinds as it expands its higher-growth overseas commerce, logistics, cloud, and AI businesses, then it could be the perfect time to buy its undervalued stock.

Alibaba stock rallied again in Wednesday morning trading, pushing shares of the China tech giant up toward a two-year high. A reported partnership with Apple is helping bolster confidence in Alibaba's AI strategy.

Apple sales have been struggling in China–iPhone revenue slumped 25% there in the fourth quarter–as the trade wars between the two biggest economies heated up.