10 AI Stocks Every Investor Should Watch

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 125 

Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 AI Stocks Every Investor Should Watch. On October 10, Bernstein raised its price target on the stock to $200 from $167, maintaining an Outperform rating.

Key factors behind the rating affirmation were post-Q1 momentum, upbeat Apsara conference guidance, and accelerating confidence in Alibaba’s AI strategy. The firm noted that Alicloud revenue should keep accelerating.

This, the firm believes, will keep Alibaba shares well-supported beyond the near term. The supports stands even though current valuation is entering a territory that they describe as “art more than science.”

The company’s GMV share in China has also stabilized at around 15-20%. Moreover, Bernstein anticipates stronger user engagement and time spent to support moderate growth, but warns about competition and heavy food delivery spending.

Competition is an important aspect to watch out for, according to the firm, which remains “somewhat doubtful that peaceful co-existence can be the stable equilibrium in domestic e-commerce.”

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