Morgan Stanley Breaks Down China's AI Computing Math: Domestic Cloud Firms' ROIC Could Reach 13%-20%, Alibaba Cloud Holds the Edge

Morgan Stanley's research report dissects three monetization paths in China's cloud market: domestic cloud vendors' return on invested capital (ROIC) stands at 13%-20%, constrained by high hardware costs, yet with massive upside as inference demand surges. Alibaba, leveraging its infrastructure and model advantages, receives a 45% bullish outlook, with its high-margin MaaS model poised to become the engine for valuation re-rating.