10 Best Machine Learning Stocks to Buy Now

8. Alibaba Group Holding Ltd. (NYSE:BABA)

Number of Hedge Fund Holders: 107

Alibaba Group Holding Ltd. (NYSE:BABA) provides technology infrastructure and marketing reach. It helps vendors and customers connect internationally. It has 7 segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media & Entertainment, and Innovation Initiatives & Others. It uses machine learning to optimize e-commerce recommendations and enhance its cloud services and logistics operations.

The company is actively expanding its Cloud Intelligence Group, which develops and provides cloud computing and AI services. By FQ3 2025, this segment had experienced triple-digit percentage revenue growth year-over-year for 6 consecutive quarters. The overall revenue growth for the company in FQ3 was 11%. Qwen AI, which is the company’s family of LLMs, is becoming increasingly popular with over 90,000 derivative models. More than 290,000 companies are using its APIs.

On March 28, Mizuho analyst James Lee reported that the company’s AI strategy is rather solid and positions it for enhanced internal productivity and better product experiences. The company is headed toward AGI (artificial general intelligence), as well as offering easy-to-use AI tools and broader solutions for businesses. Alibaba Group Holding Ltd. (NYSE:BABA) is now developing Qwen 2.5 Max, which is the company’s most advanced LLM so far with applications across various AI tasks. This highlights its increased AI infrastructure spending planned over the next 3 years.