Alibaba (BABA) CEO says its ability to supply AI demand is not able to keep up with all the growth in demand; rapid grown in model-as-a-service business will have a very positive impact on gross profit margin over the next few quarters

Alibaba's CEO highlights a mismatch between AI demand growth and their supply capabilities, indicating potential for missed opportunities in the short term. However, the rapid expansion of their model-as-a-service could result in significant improvements to gross profit margins in the near future. This suggests a strong outlook for profitability, especially as they adapt to market demands, which could positively influence investor sentiment towards the stock.