Alibaba, Baidu, Kuaishou Address Mounting AI Costs as Competition Intensifies

Alibaba Group Holding Ltd., Baidu Inc. and Kuaishou Technology are the next big names in tech that will have to address concerns over the mounting financial costs needed to sustain intense AI competition.

That pressure already weighed on rival Tencent Holdings Ltd., which saw shares sag after disclosing it more than doubled spending last quarter in an attempt to shed its status as a laggard in the AI space.

Alibaba may strengthen its frontrunner position with Qwen3.8-Max, its biggest ever AI model that claims capabilities on par with US rivals.

While China’s vast internal market gives AI firms a strategic advantage over US counterparts, the prime focus remains adoption, rather than profit, Bloomberg Intelligence said, noting Kuaishou’s AI strategy is likely to depress margins while Baidu’s potential spinoff of AI chip unit Kunlunxin will likely not improve its near-term earnings outlook.

In the EV space, Xiaomi Corp. faces declining growth and longer-term scrutiny after its new Skynomad sport utility vehicles were priced below market expectations, stoking margin pressure concerns. Geely Automobile Holdings Ltd.’s stronger vehicle exports should lend strength in first-half results.

Highlights to look out for:

Monday: Geely (175 HK) could see oil shocks impacting its gasoline car businesses, but stronger premium EV sales from Zeekr should continue to boost earnings, said BI. Vehicle shipments also improved despite weaknesses in China as exports nearly tripled.

Tuesday: Baidu’s (BIDU US) advertising revenue likely dropped due to persistent competition from AI chat bots, which is changing the way users find desired information, according to Nomura. Rising capital spending will remain a drag on cash flow, BI added. Earnings likely fell to a six-year low.

Xiaomi (1810 HK) could see declining earnings growth for the third straight quarter, estimates show. Softer EV and smartphone sales, along with unfavorable margins on memory price hikes, contributed to the soft quarter, said Citi. Third-quarter results will likely continue to be weak with smartphone margin pressures, they added.Surging copper prices should have pushed BHP’s (BHP AU) full-year underlying profit higher. Morgan Stanley forecasts a second half dividend 13% above consensus, as funds from the Antamina streaming deal and lower-than-normal debt levels provide scope for increased distributions despite expectations for elevated spending over the next few years. Watch for any update on mid-term capital spending and new CEO Brandon Craig’s vision on capital allocation and growth, BI said.

Wednesday: Kuaishou Technology (1024 HK) earnings could have fallen by a third despite moderate revenue growth in the second quarter as AI spending continues to weigh on margins and cash flow. Also watch for Kling AI’s revenue trajectory after a recent $2.8 billion fundraising. Management may comment on shareholder structure after Tencent cut its stake below 10%.

Santos’ (STO AU) net income is seen up as oil prices remained high in the first half amid the ongoing conflict between the US and Iran. The balance sheet is well placed across a range of metrics, Morgan Stanley said, with its free cash flow yield appealing for investors.

Thursday: Alibaba’s (BABA US) outlook is increasingly supported by accelerating cloud growth, improving margins and stronger AI execution, said UOB Kay Hian. Its latest Qwen3.8-Max model strengthens the tech giant’s frontier-model competitiveness, they added. Fiscal first-quarter revenue likely rose 8.4%, the fastest since 2024, while its quick commerce segment sees strongest sales growth.

Pop Mart (9992 HK) may post its slowest first-half profit growth since 2022 as the market assesses whether the company can diversify beyond Labubu, which accounted for about 40% of 2025 revenue. The performance of other flagship IPs, including Crybaby, Skullpanda and Molly, could help ease concentration concerns, while overseas demand remains in focus after weaker US spending trends prompted estimate cuts.Ping An Insurance (2318 HK) may face scrutiny over its investment performance after weaker equity markets and lower interest rates weighed on first-quarter earnings. The sustainability of new business value growth, alongside management’s outlook for capital deployment and shareholder returns, will be key areas of interest.

Friday: No notable earnings.

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