Barclays, CNBC Commentator Tout BABA, Taiwan Semi (TSM), Respectively

British bank Barclays maintained its bullish stance on Chinese tech giant Alibaba (BABA) today, while CNBC commentator and professional investor Steve Weiss reported that he had recently bought more shares of Taiwan Semi (TSM).

Why Barclays Remains Upbeat on BABA

Barclays noted that the growth of BABA’s cloud business is accelerating, and the bank predicts that the unit will continue to expand for the rest of the year.

Moreover, in light of the company’s efforts to sell AI-related services to its customers, the margins of its cloud unit are likely to climb going forward, according to Barclays.  Also importantly, BABA will probably benefit from the evolution of AI to inference and Edge AI, the bank believes.

Contending that the value of BABA’s cloud unit, which generates annual EBITDA of $2 billion, is not reflected in its shares, Barclays kept a $180 price target and an Outperform rating on the stock.

Why Steve Weiss Bought More TSM Stock

Weiss, the Chief Investment Officer and Managing Partner of Short Hills Capital Partners, believes that the stock’s valuation is attractive.

When TSM has a price-earnings ratio of 14 times, “you have to buy the stock,” he said.

Additionally, he thinks that the U.S. cannot prevent any computer chips from entering the country.

While we acknowledge the potential of TSM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.