Why BofA Turned More Bullish on Alibaba (BABA) After AI Push

Alibaba Group Holding Limited (NYSE:BABA) is one of the AI Stocks in the Spotlight This Week. On September 24, BofA Securities analyst Joyce Ju raised the price target on the stock to $195.00 (from $168.00) while maintaining a Buy rating. The rating affirmation follows Alibaba Cloud hosting its annual event Apsara Conference.

The firm believes that Alibaba is positioned as the world’s leading full-stack artificial intelligence services provider. Moreover, it is accelerating investment in AI and cloud computing to embrace the era of Artificial Superintelligence (ASI).

“Alibaba Cloud hosted its annual flagship event Apsara Conference this week. In the opening remark, CEO MR. Eddie Wu highlighted that the company will increase investment in AI and cloud computing beyond the initial budget of RMB380b over the next three years to embrace the era of Artificial Superintelligence (ASI). Mgmt. believes large models will be the next generation of operating systems while AI cloud will be the next generation of computers. Over time, there may be only 5-6 super cloud computing platforms across the globe, in mgmt.’s view. Eyeing the huge opportunity in the new ASI era, the company positions itself as a world’s leading full-stack AI services provider to offer best-class large models, global AI cloud network, as well as open and developer friendly ecosystem.”

Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally.

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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