8 Best Machine Learning Stocks to Buy According to Hedge Funds

6. Alibaba Group Holding (NYSE:BABA)

Number of Hedge Fund Holders: 115

Alibaba Group Holding (NYSE:BABA) is a Chinese tech giant that runs a vast e-commerce empire. This includes marketplaces like Taobao, Tmall, and AliExpress. It also offers cloud computing, logistics, and digital media services.

In FQ2 2025, the company’s revenue rose 7% year-over-year, driven by double-digit growth in public cloud services. Notably, AI-related product revenue maintained its impressive triple-digit growth for the fifth consecutive quarter, which solidified its position as a key growth engine for Alibaba Cloud. Alibaba Cloud is driving significant AI growth in Asia. The success is evident in collaborations with companies like Japan’s Lightblue, Malaysia’s Pictureworks, Singapore’s Atlas, and China’s Drunk Elephant. They demonstrate the applications of Alibaba Cloud’s AI technologies across various industries.

In December 2024, Selina Yuan, President of International Business at Alibaba Cloud Intelligence stated the following:

“We are thrilled to witness our robust cloud infrastructure and AI offerings empowering organizations across a diverse range of industries to further drive transformation in 2024 with our partners together. As the leading cloud service provider in Asia, we remain committed to helping our customers enhance their operations and deepen their connections with consumers, while collaborating with our ecosystem partners to unlock the full potential of AI and cloud technologies for businesses of all sizes.”

This shows Alibaba Group Holding’s (NYSE:BABA) commitment to using AI to drive its growth through strategic innovations.