Alibaba (BABA) Hits New High on $53-Billion AI Bet

We recently published 10 Stocks Crushing Wall Street, AI Stocks Dominate. Alibaba Group Holding Ltd. (NYSE:BABA) is one of the top performers on Tuesday.

Alibaba Group soared to a new all-time high on Wednesday, as investors gobbled up shares after boosting its investments in artificial intelligence (AI) to 380 billion yuan ($53 billion) and partnering with Nvidia Corp. to support the program.

In intra-day trading, Alibaba Group Holding Ltd. (NYSE:BABA) climbed to its highest 52-week price of $180.16 before trimming gains to end the day just up by 8.19 percent at $176.44 apiece.

At an annual technology conference, Alibaba Group Holding Ltd. (NYSE:BABA) CEO Eddie Wu said that the company was vigorously advancing a three-year AI initiative, boosting the total investment to 380 billion yuan, in line with its strategic vision and anticipation of the artificial superintelligence era.

Alibaba Group Holding Ltd. (NYSE:BABA) said it partnered with chip giant Nvidia Corp. for the expansion of global data centers and development of new AI products as it plans to make the sector a core priority alongside e-commerce.

Wu said that companies globally are spending $4 trillion over the next five years, and that Alibaba “needs to keep up.”

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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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