Alibaba’s shares have surged nearly 70% in the US so far in 2025, making it a top pick for investors betting on Chinese artificial intelligence. The company recently reported a six-straight quarter of triple-digit growth in AI-related product revenue. Its Qwen AI model has won deals for iPhones sold in China and proved itself as a rival to DeepSeek.
Founder Jack Ma made his public reappearance last month, attending a rare meeting with Chinese President Xi Jinping. Analysts predict Alibaba’s gains will continue, with Jefferies setting a $156 price target. UBS analysts have also switched their focus to Alibaba, citing its exposure to AI and quant factors.
In contrast, the Temu parent company, PDD, saw its market cap drop several months ago, raising concerns about Alibaba’s core e-commerce business. However, Taobao and Tmall Group’s sales rose 5% in the latest quarter. While crowding into related stocks has been slow this year, UBS says investors should look at AI laggers like Tencent and Baidu.
JPMorgan analyst Alex Yao notes that both Tencent and Baidu’s share prices could be driven by AI development with different risks. The firm has a neutral rating on Baidu but is overweight on Tencent and Alibaba, with a $125 price target for Alibaba shares. Morgan Stanley, however, is more cautious, with an equal-weight rating and a $100 price target, citing potential risks such as weaker consumption and slower enterprise digitalization.
Source: https://www.cnbc.com/2025/02/23/alibaba-rose-on-china-ai-hopes-where-analysts-see-the-stock-heading.html