10 AI Stocks on Wall Street’s Radar Right Now

5. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally. On February 24, Citi analyst Alicia Yap maintained their bullish stance on the stock, giving a “Buy” rating. Several factors have led to the rating from Citi, particularly Alibaba’s strategic advancements in AI and the recent launch of the Qwen reasoning model, QwQ, on Qwen Chat.

This reasoning model not only highlights the company’s commitment to innovation in deep reasoning, but also underscores its announcement of a significant capital expenditure investment of RMB 380 bn over the next three years. This investment aims to capture AI opportunities more rapidly. Alibaba is further anticipated to maintain a competitive edge in the AI space through ongoing enhancements and future releases, which include the QwQ-Max version as well as smaller variants for local deployment.