10 AI Stocks Analysts Are Backing Right Now

4. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 101

Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 AI Stocks Analysts Are Backing Right Now. On September 2, Mizuho analyst Jason Helfstein raised the price target on the stock to $159.00 (from $149.00) while maintaining an Outperform rating.

The rating affirmation follows Alibaba’s earnings report, characterized by light revenue and EBITA due to divestures and increased investments. However, commerce and cloud are doing better due to robust demand and execution.

“BABA’s cloud growth should accelerate in the next two quarters driven by strong Gen-AI demand, and we continue to believe BABA processes the best Cloud assets in China to capitalize on significant industry growth ahead. We view BABA’s fundamentals incrementally healthier post the print. Looking ahead, we expect investment in Instant Shopping to remain elevated and management to continue to improve efficiency. We raise FY28 EBITDA estimate by 3% on better synergy outlook. Maintain Outperform and raise PT from $149 to $159, based on 9.5x our new FY28E EBITDA.”

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