12 Best ADR Stocks To Invest In According to Analysts

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2. Alibaba Group Holding Limited (NYSE:BABA)

Upside Potential: 38.99%

Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese e-commerce and technology company that generates revenue through online retail and wholesale platforms, digital media, and logistics. The company is also a significant player in the field of artificial intelligence (AI), with Alibaba Cloud’s Platform for AI, and offers a comprehensive suite of tools and services for enterprises and developers.

Alibaba Cloud’s Platform enables users to efficiently manage tasks such as data labeling, model building, training, and deployment, supporting a wide range of industry applications. According to DBS Bank, Alibaba Cloud services have a 37% market share in China.

On November 18, the Financial Times reported that Alibaba Group Holding Limited (NYSE:BABA) is actively recruiting top AI experts in Silicon Valley, targeting individuals with experience at leading American firms such as OpenAI. The company is recruiting an AI team in California’s San Francisco Bay Area and has approached AI researchers, engineers, and product managers who have worked at some of the biggest tech companies in the United States. By hiring engineers with backgrounds in top US companies, Alibaba Group Holding Limited (NYSE:BABA) is aggressively expanding its presence in the AI space through strategic talent acquisition, despite efforts by the US government to limit the growth of Chinese tech companies.

Alibaba Cloud also benefits from a favorable environment, with the Chinese government promoting its adoption as part of its national digital strategy. The company’s cloud division is poised for significant growth, driven by increasing internet adoption, the rollout of 5G, and government incentives driving cloud demand.

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