15 AI Stocks Taking Wall Street by Storm

3. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 115

Alibaba Group Holding Limited (NYSE:BABA) is an online retailer leveraging AI in its e-commerce business. It has recently launched more than a hundred new AI models as part of its AI push.

On November 25, DBS analyst Sachin Mittal maintained a “Buy” rating on Alibaba Group Holding Limited (NYSE:BABA) after the company released its second-quarter results for FY25. The company’s Q2 results were strong, particularly in its cloud and e-commerce sectors. The company’s revenue reached ¥236.5 billion, a 5% year-on-year increase. Alibaba’s Taobao and Tmall also managed 1% revenue growth despite a challenging retail environment. The company’s Cloud Intelligence Group reported ¥29.6 billion in revenue, marking a 7% year-over-year growth. The Cloud Intelligence Group is a global leader in cloud computing and artificial intelligence. The growing demand for public cloud and AI-driven products is also expected to achieve a consistent 9% CAGR (compound annual growth rate) from FY24 to FY27. Overall, Mittal expects Alibaba’s earnings to reach their lowest point by the fiscal year ending in March 2025, after which he expects a rebound in earnings, driven by growth in the company’s Cloud and E-commerce divisions.