11 Cheap NYSE Stocks to Invest in According to Hedge Funds

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

Forward P/E Ratio as of April 8: 10.39

Number of Hedge Fund Holders: 107

Alibaba Group Holding Ltd. (NYSE:BABA) offers technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers. It has seven segments and also operates Taobao and Tmall, which are digital retail platforms. It also offers Alimama, which is a proprietary monetization platform.

The company has planned substantial AI infrastructure spending over the next 3 years. On March 28, Mizuho analyst James Lee highlighted the company’s strong AI strategy which prepares it for improved internal productivity and enhanced product experiences. Qwen AI, which is its family of LLMs, has over 90,000 derivative models and over 290,000 companies are using its APIs. The company is now developing Qwen 2.5 Max, which is its most advanced LLM with applications across various AI tasks.

The company is also expanding its Cloud Intelligence Group, which develops and provides cloud computing and AI services. This segment experienced triple-digit percentage revenue growth year-over-year for 6 consecutive quarters in FQ3 2025. The total revenue grew by 11% in this quarter. The cloud computing division particularly grew by 13% due to rapid AI expansions.