We recently published a list of 12 AI Updates Worth Taking a Look At. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against other AI stocks worth taking a look at.
AI’s Expanding Role in Carbon Up-Valuing and Biopharma Development
In a Bloomberg interview, SandboxAQ CEO Jack Hidary started discussing the company’s partnership with Saudi Aramco, which focuses on using AI to convert carbon emissions into valuable products. Unlike language models trained on internet data, SandboxAQ develops large quantitative models (LQMs) that specialize in chemistry and physics, making them suitable for industries such as petrochemicals and pharmaceuticals.
Hidary explained that Aramco, as one of the world’s most valuable companies, can improve its market value not just by increasing production but by converting carbon emissions into high-value materials. For example, AI-driven chemical processes can transform carbon into composites used in the automotive industry to make vehicles lighter and more efficient. The shift from traditional carbon capture and storage to carbon capture and up-valuing represents a anew approach to sustainability, turning emissions into useful resources rather than simply storing them underground.
Moreover, Hidary emphasized AI’s broader economic impact, predicting that AI-driven innovations will contribute to deflationary trends by lowering costs in sectors like energy storage, housing, agriculture, and manufacturing. He noted that while inflation is a short-term concern, AI’s influence on business-to-business applications will significantly drive down costs over the next several years.
Hidary also discussed future expansion as SandboxAQ sees strong potential in the Gulf region, where governments are actively embracing AI across different sectors. Hidary pointed out that countries like Saudi Arabia, the UAE, and Bahrain possess valuable genomic and medical data, which could enable them to develop their own biopharma assets rather than relying on imported medicines and diagnostics. By using AI-powered LQMs, these nations could create homegrown pharmaceutical innovations to address regional health concerns and contribute to the global biotech industry.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 database of over 1000 hedge funds.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An e-commerce platform displaying a wide range of products to customers online.
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 Group Holding Limited (NYSE:BABA)’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.
Overall, BABA ranks 1st on our list of AI stocks worth taking a look at. While we acknowledge the potential of 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.
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Disclosure: None. This article is originally published at Insider Monkey.
