10 Hot AI Stocks to Watch 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 26, Analyst Fawne Jiang from Benchmark Co. maintained a “Buy” rating on the stock with a $190.00 price target.

Jiang expects Alibaba’s stock to rise in 2025 based on improvements in Alibaba’s core businesses, including e-commerce, cloud, and AIDC. In particular, the e-commerce segment is anticipated to experience growth, while AIDC is expected to achieve profitability by FY26. Earnings and stock value are also expected to boost based on the reduction of losses in other segments and the divestment of non-core assets.

Additionally, Jiang highlights how Alibaba is a key player in the AI sector, boasting competitive advantages in cloud infrastructure, proprietary models, and versatile applications across various use cases. Alibaba’s AI models flaunt robust multilingual capabilities and offer the ability to support both cloud and edge devices. The firm further noted how Alibaba’s shares are still trading at a reasonable valuation compared to global peers, offering further upside potential.