Alibaba's $10 Billion AI Bet: What China's Tech Giants Signal About the Global AI Race

**SPEAKER_1** (0:01)
This is InvestTalk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero.

**Luke Guerrero** (0:15)
Good afternoon, fellow investors, and welcome to the Monday, August 31st, 2026 edition of InvestTalk. I'm your host, Luke Guerrero, and I'll be with you as we round out the month of August and prepare ourselves because we are heading in to one of the final months of the quarter, one of the final months of the year. But for us, that doesn't really change much because we come to this show, this place, each and every day, regardless of what time it is, what day it is, in order to educate ourselves, to help ourselves become better, more informed investors.
To that end, before we talk about today's market performance, before we run down those show topics, let's tackle this caller question now.

**SPEAKER_3** (1:07)
Hi, Justin and Luke. I'm calling today about ticker CCJ, Cameco. I do own this company, but about half a position. I'm wondering after this pullback, if you think now is a good time to add to my position, and if not, what do you think is a good spot to? Appreciate your time. Bye.

**Luke Guerrero** (1:24)
Take a look at Cameco CCJ. It is the Uranium Play that we certainly are fans of. It has been a name that has been in, actually, a couple of our strategies for quite some time. But as we tend to recommend to listeners, as this has appreciated, we have taken profit. Because this name has been up a lot in the past couple of years. It was up 90% in 2023, up another 20 in 2024, up 78% last year. This year, it's positive, albeit at a slower pace, right? It's only up about 8% year to day, but over the past 52 weeks, it's up 27.61%.
Now, one thing that has suppressed the price of the past three months because it is down 12.37% is the missed Q2 earnings. And it was a pretty bad miss, but in spite of that, the stock rallied anyway. Momentum has continued building in to this month. In fact, over the past one month, it's up from 86.38 to 98.76. That is quite a return for the month of August.
One of the reasons why it rallied is because the market is forward-looking. They announced a Westinghouse Electric, this enterprise that owned jointly with Brookfield, filed for a registration statement for an IPO. And so that has driven the price over the past month in spite of the earnings miss.
Now for us, I think this is a situation where a headline number miss like a big EPS miss matters a lot less than the two structural catalysts that are happening here, resilient uranium pricing and this IPO filing which gives a catalyst for a concrete path to seeing stock appreciation separately from the core uranium mining business. And even in spite of what happened last quarter, I mean consensus 2026 and 2027 earnings, earnings growth estimates are still pretty solid, 27 and 56 percent respectively. So for us, this is a name that we like, we hold it albeit at a lower weight than we did before because the valuation is pretty high. It's trading at 8.7 times price to forward-looking earnings, 63.7 times price to, sorry, 63.7 times price to forward-looking earnings and 8.7 times price to book. This is still a name that we like. It hasn't come down much, albeit it is below its average. Either way, we like this name, we continue to hold this name. That is CCJ Cameco Corporation. Thanks for the call. All right, we had a great show for you on Friday. We looked into Trade War 2.0, Canada's auto tariffs hitting 50% and what it meant for your wallet. Also, we answered a listener question on ticker DKS, which is Dick's Sporting Goods. If you happen to miss it, go check it out. The best way to get every show is you follow InvestTalk wherever you get your podcasts. Now on to today where we have a lot to cover in the next 45 minutes or so, including my main focus point about Alibaba's $10 billion AI bet. More specifically, about what China's tech giants signal about the global AI race. Not sure if you know this, but Alibaba raised $10 billion in a share sale last week, specifically to fund AI expansion that immediately launched its Wan3.0 AI video model, a signal that Chinese tech giants are moving fast and spending big in order to compete with US rivals. We're going to examine what this capital deployment means for the global AI arms race, for competitive dynamics, and whether US investors should be paying close attention to Chinese AI.