Alibaba Group Holding Limited (BABA): Among Ken Fisher's Technology Stock Picks with Huge Upside Potential

We recently published an article titled Billionaire Ken Fisher's 10 Technology Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against the other technology stocks.

Technology stocks have faced heightened volatility in 2025, with market sentiment swinging sharply in response to President Donald Trump’s aggressive trade policies. On April 3, tech shares endured their worst day since the COVID-19 pandemic as Trump announced sweeping tariffs on all imported goods, including a 34% duty on Chinese imports, exacerbating fears of a global trade war. An iPhone maker led the steep declines among the "Magnificent Seven," plummeting over 9% due to its reliance on Chinese manufacturing. Other tech giants also fell between 8% and 9%, while semiconductor and PC companies recorded double-digit losses. The tech-heavy NASDAQ tumbled 6%, marking its worst session over five years and deepening its year-to-date loss to more than 14%.

Despite the recent turmoil, broader optimism about technology and growth stocks remains underpinned by longer-term trends. Notably, Ken Fisher of Fisher Asset Management has emphasized that while mega-cap tech firms often face headwinds, they tend to outperform during bullish cycles and reflect broader market confidence. He argues that 2024’s rally was more expansive than many recognize, with tech and communication services stocks leading growth across the board. While tech stocks often decline more in bearish periods, their historical track record of resilience and growth during recoveries continues to make them attractive for long-term investors. This underscores why, even amid significant volatility, tech stocks retain strategic value for portfolios, particularly when the market regains momentum.

Signs of a potential rebound appeared later in April, as major indexes recovered modestly on April 24, with tech shares helping lead the rally. Investors responded positively to reports that the U.S. and China had resumed trade talks, despite earlier denials from Beijing. Trump’s announcement that some tariffs might be rolled back helped ease immediate fears, although uncertainty remains high. Analysts noted that the recent tech selloff had left the market oversold, setting the stage for short-term gains. However, mixed earnings reports and rising costs across industries continue to fuel caution, reinforcing the unpredictable nature of trade policy’s impact on tech and broader equity markets.

Our Methodology

For this article, we scanned Fisher Asset Management’s Q4 2024 13F filings to identify billionaire Ken Fisher's technology stock picks with the highest upside potential. We compiled the tech equities with upside potential higher than 27% at the time of writing this article and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders as of Q4: 107

Fisher Asset Management’s Equity Stake: Million 

Upside Potential as of April 30: 40.59%

Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese multinational technology conglomerate with diverse operations spanning e-commerce, cloud computing, logistics, and digital services.

In the quarter ending December 31, 2024, Alibaba Group Holding Limited (NYSE:BABA) reported strong financial performance, with revenue rising 8% year-over-year to RMB 280.15 billion ($38.38 billion). Operating income surged by 83% to RMB 41.2 billion ($5.65 billion), driven by operational efficiencies and reduced intangible asset impairments. Adjusted EBITA increased by 4% to RMB 54.85 billion ($7.52 billion), while net income attributable to shareholders soared 333% to RMB 48.95 billion ($6.71 billion), bolstered by gains on equity investments and core business strength. Earnings per ADS were RMB 20.39 ($2.79), and non-GAAP diluted EPS reached RMB 21.39 ($2.93), up 13% from the previous year.

Alibaba Cloud returned to double-digit growth, with a 13% year-over-year revenue increase, reflecting robust demand for AI-related services. Looking ahead, Alibaba has pledged RMB 380 billion ($52.4 billion) over the next three years to scale its AI and cloud capabilities. CEO Eddie Wu emphasized targeted investment in foundational models, AI-native applications, and transformation initiatives, while Chairman Joe Tsai cautioned against unsustainable AI spending trends observed in other markets.

Further solidifying its AI ambitions, Alibaba Group Holding Limited (NYSE:BABA) recently launched the Qwen3 series, the third generation of its open-source AI models. Developed by its cloud computing division, the Qwen3 family includes eight models ranging from 600 million to 235 billion parameters, offering improved performance across language processing, coding, reasoning, and mathematical tasks. Benchmark tests suggest that models like Qwen3-235B and Qwen3-4B match or exceed the capabilities of leading competitors such as OpenAI's o1, Google’s Gemini, and DeepSeek’s R1. The models also offer enhanced multilingual support and faster processing speeds.

Notably, the Qwen3-30 B-A3 B, a smaller Mixture-of-Experts model, outperforms the previous QwQ-32B, and the compact Qwen3-4B delivers comparable results to the much larger Qwen2.5-72 B-Instruct. Alibaba Group Holding Limited (NYSE:BABA) described this advancement as a pivotal step toward artificial general intelligence and artificial superintelligence, citing gains in pre-training methods and reinforcement learning as key drivers of improved model intelligence.

Overall BABA ranks 5th among billionaire Ken Fisher’s technology stock picks with huge upside potential. While we acknowledge the potential of 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 timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

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