Alibaba Group Holding Limited (NYSE:BABA) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 10, Reuters reported that Alibaba Group Holding Limited (NYSE:BABA) has shown interest in buying Nvidia’s H200 AI chip, as the Trump administration has allowed Nvidia to export its chips to China.
According to the report, Chinese companies, including Alibaba, are yet to get a green light from the government to import chips from Nvidia. If the government allows it, this will be important news for Alibaba Group Holding Limited (NYSE:BABA) and other Chinese tech companies. These companies are currently using H20 chips, which are almost six times slower than the latest H200 chips, produced by Nvidia.
The report also highlighted that the Chinese government, in the last week, called representatives from Alibaba Group Holding Limited (NYSE:BABA), ByteDance, and Tencent to assess the demand for H200 chips. Alibaba and other companies in China are keen on securing these latest chips due to their ability to train AI models faster and more efficiently.
That said, Wall Street has a mixed opinion on the stock. Recently, on December 9, Arete downgraded the stock to Neutral from Buy with a $172 price target. However, earlier on December 2, Susquehanna reiterated a Buy rating on the stock with a $190 price target.
Alibaba Group Holding Limited (NYSE:BABA) is a technology company that operates primarily in e-commerce, cloud computing, and online payment services.
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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Disclosure: None. This article is originally published at Insider Monkey.
