Why AAPL Is Advancing Today

Apple (AAPL) is climbing 3% after a report stated that the tech giant was partnering with Chinese e-commerce juggernaut Alibaba (BABA) on an AI project.

The Possible Deal Between AAPL and BABA

AAPL and BABA are collaborating to provide new AI features to Apple’s iPhones in China, The Information reported. The enhancements are currently being evaluated by China’s tech regulator, the publication stated.

An Apple store displaying the latest in consumer electronics, from smartphones to wearables.

Apple has indicated that it would roll out new AI features in April.

 BABA’s Significant Progress on AI

Late last month, the China-based conglomerate reported that its AI model, Qwen 2.5, achieved better results than DeepSeek’s V3 offering in most metrics. Additionally, BABA reported that its model also outclassed the top-notch, open-source AI offerings of Meta (META) and OpenAI.

Also noteworthy is that the well-known American investment company, Citron Research, has stated that BABA’s new AI models may be very useful for China-based enterprises. In fact, Citron suggested that Qwen  “is bullish for China overall and strengthens the long China trade.”

The Recent Price Action of AAPL Stock

In the last month, the shares are little changed while they have climbed 4.5% in the last three months.

While we acknowledge the potential of AAPL, 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 AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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