Top 8 AI News Updates on Wall Street’s Radar

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1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a provider of technology infrastructure, e-commerce platforms, cloud services, and digital media solutions for organizations and consumers globally. In recent years, the company has also made significant investments in AI development.

On March 28th, Mizuho analyst James Lee said the brokerage’s “AI deep dive” on Alibaba Group Holding Limited (NYSE:BABA) revealed that the company has solid building blocks for AI investments—“scaling models toward AGI, building a platform for model APIs to accelerate application deployment for customers, and ultimately providing end-user solutions directly across industries.” He noted that Mizuho expects Alibaba’s AI investments to bump productivity internally, translating to better product conversions and recommendations.

“Concurrently, we look for businesses ex-TTG to reduce losses (11% of EBITA) and potentially reach break-even in two years; (3) We raise FY26E cloud revenue growth from 13% to 17% YoY due to increased confidence in the product roadmap and improving sentiment around China enterprise IT spending,” the analyst added. The brokerage maintained its “Outperform” rating on the stock and increased its 12-month target price to $170 from $140 per share.

While we acknowledge the potential of Alibaba Group Holding Limited (NYSE: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 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 30 Best Stocks to Buy Now According to Billionaires.

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