Alibaba Group Holding Limited (NYSE:BABA) is one of the 15 AI Stocks That Are Skyrocketing. On January 15, Morgan Stanley reiterated its Overweight rating on Alibaba Group Holding Limited (NYSE:BABA) with a price target of $180. The firm pointed to strong growth in the company’s Qwen AI assistant.
Morgan Stanley believes Qwen could develop into an “all-in-one AI superapp and life assistant,” which may help boost Alibaba Group Holding Limited’s (NYSE:BABA) share price along with revenue growth in its cloud business. However, the research firm pointed out that higher marketing spending to support user adoption could lead to bigger losses in other segments. Morgan Stanley estimates that these losses could reach about CNY 7 billion in the fiscal third quarter.
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On January 14, Jefferies also reiterated its Buy rating on Alibaba Group Holding Limited (NYSE:BABA) with a price target of $225. Jefferies believes the company’s Cloud business will capture the majority of incremental industry AI cloud revenue, and expects to see the market share grow in 2026.
According to Jefferies, growing AI adoption and AI agent opportunities will support increased cloud demand for Alibaba Group Holding Limited’s (NYSE:BABA) services.
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company focused on e-commerce, retail, AI, digital media and entertainment, cloud, and technology.
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.
