Alibaba Group Holdings Ltd. (NYSE:BABA) (NYSE:BABAF) is revving up its engines, courtesy of a new partnership with Nvidia Corp (NASDAQ:NVDA) that promises to take autonomous driving to the next level.

By integrating Alibaba's Qwen large language models (LLMs) with Nvidia's Drive AGX Orin platform, this collaboration not only enhances in-car AI capabilities but also showcases Alibaba's strategic maneuvering amid U.S. sanctions on advanced semiconductor chips.

In a display of synergy, Alibaba Cloud's partnership with Nvidia aims to enhance the driving experience for smart vehicle owners, equipping cars with intelligent voice assistants capable of executing commands and offering recommendations.

This move positions Alibaba at the forefront of automotive AI technology, ensuring it remains competitive in a rapidly evolving market.

Read Also: Alibaba Teams Up With Nvidia to Supercharge EVs for Chinese Automakers: Report

Driving Up Investor Confidence: PBoC's Boost Fuels Alibaba

This tech alliance comes at a fortuitous time as the People's Bank of China (PBoC) recently slashed key interest rates, flooding the banking system with liquidity and sparking a rally in Chinese stocks.

With the National Day Holiday approaching, investor confidence is rising—making it the perfect backdrop for Alibaba's ambitious automotive aspirations.

Charting The Course: Buckle Up For Bullish Trends

Alibaba's stock is cruising at about $95, a solid 5.45% increase at the time of publication Tuesday.

Chart created using Benzinga Pro

The stock has increased 20.51% year-to-date and 3.29% over the past year, signaling a robust performance in a volatile market.

From a technical standpoint, the charts are painting a picture of bullish momentum. Alibaba stock is currently above its five, 20 and 50-day exponential moving averages, indicating a strongly bullish trend despite experiencing slight selling pressure.

Here's the breakdown:

• Eight-Day SMA: $87.41 (Bullish signal)
• 20-Day SMA: $84.43 (Bullish signal)
• 50-Day SMA: $81.26 (Bullish signal)
• 200-Day SMA: $76.52 (Bullish signal)

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) currently sits at 1.98, indicating a bullish trend for Alibaba stock.

However, caution is advised as the Relative Strength Index (RSI) reads 69.13, indicating that the stock is about to enter the overbought territory.

The Bollinger Bands also favor a bullish stance, with the stock trading above the upper bullish range.

Full Speed Ahead: Signs Point To Opportunity In BABA

Alibaba's strategic partnership with Nvidia has set the stage for exciting developments in the autonomous driving sector, while the technical indicators suggest a bright future for Alibaba stock.

As the company prepares for an AI-enhanced driving experience, investors should stay focused on the potential ahead—this journey is just beginning.

• Alibaba Shares Are Trading Higher: What's Going On

Photo: Shutterstock