Michael Burry’s Top Holdings Were Gaining While NVDA Was Crashing

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1. Alibaba Group Holding Ltd.

Portion of portfolio: 16.42%

Value of holdings: $12,718,500

Overall, Alibaba Group Holding Limited (NYSE: BABA) remains first among Michael Burry’s top portfolio holdings. Alibaba is a multinational technology company providing online and mobile marketplaces in retail and wholesale trade.

The company’s platforms, such as Taobao and Tmall, serve millions of customers daily, while Alibaba.com and AliExpress boast a presence in more than 190 countries and regions. Alibaba Cloud, Alibaba’s cloud computing division, is one of the largest in the world, providing scalable IT solutions to businesses. Over the next three years, it plans to invest $53 billion into cloud computing and artificial intelligence. The company also has interests in digital media, logistics and fintech.

Burry reduced its stake in the Chinese tech giant sequentially by 25% between the third and fourth quarters to 150,000 shares, according to a quarterly filing with the Securities and Exchange Commission Scion Asset. However, year-over-year, the ‘Big Short’ investor doubled down interest in Alibaba from 75,000 in the fourth quarter of 2023.

The Chinese titan, which has a market capitalization of roughly $330.238 billion, reported fourth-quarter fiscal 2024 results with revenue reaching RMB280.2 billion (US$38.6 billion), up 8% year-over-year. Customer management revenue at Taobao and Tmall Group increased by 9% to RMB100.8 billion over the same period. Cloud revenue increased 13% to RMB31.7 billion, driven by AI-related products. Net income increased 333% to RMB46.4 billion.

Alibaba made headlines in 2023 venturing into AI with the launch of its own ChatGPT-style product Tongyi Qianwen. A new version of the company’s Qwen 2.5 artificial intelligence model was released in January on the heels of a meteoric rise of Chinese AI startup DeepSeek, according to Reuters.

Alibaba shares traded at $139.02 after the market close on March 11. While Alibaba stock lost over 54% of its value from a late 2020 peak, year-to-date the share price gained over 65% year-to-date.

While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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