Gavekal Technologies

For most of the past two decades, the solar story was about making the panel cheaper. China has solved that problem. Thanks to massive excess capacity, Chinese producers are not making much money. With equipment now a commodity, the economic value of solar will mainly come from its installation. The broadest local benefits are likely to come in countries that can figure out how to scale up distributed solar generation at homes and businesses.

AI-related investments are putting greater pressure on Alibaba Group Holding (Alibaba)’s earnings and cash flow. In the June quarter (calendar 2Q26, Alibaba’s fiscal 1Q27), group revenue rose 9% YoY, but net income dropped 75% YoY.