12 AI Updates Worth Taking a Look At

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1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) operates in e-commerce, cloud computing, logistics, and digital media, serving both global and Chinese markets. The company is also a major player in AI investment and development.

On February 21, JPMorgan raised Alibaba’s price target from $125 to $170, maintaining an Overweight rating. Analyst Alex Yao expects the company’s fourth-quarter 2024 results to shift investor sentiment toward sustainable earnings growth. Near-term gains are expected from e-commerce monetization, while long-term profits may come from cloud and AI. With an estimated adjusted EPS CAGR of 29% for FY25-27, Yao believes this outlook could lead to a valuation re-rating. Alibaba is expected to remain central to China’s AI trade, attracting capital inflows. The December 2025 price target for Hong Kong shares is now HK$165.

While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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