10 Most Undervalued AI Stocks to Buy According to Analysts

5. Alibaba Group Holding Limited (NYSE:BABA)

P/E Ratio: 11.71

No. of Hedge Fund Investors: 125

Analyst Upside: 45.73%

Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 30, Jefferies lowered its price target on Alibaba Group Holding Limited stock from $156 to $153, maintaining its Buy rating on the stock.

Thomas Chong from Jefferies slightly reduced the price target on BABA, citing increased investment in food delivery and logistics. Chong remains positive about Alibaba and said that its on-demand services, including Eleme and Taobao Instant Commerce, managed over 60 million daily orders in late June. This remarkable development could help Alibaba drive user growth and engagement, Chong mentioned.

Alibaba has lately been investing in AI, and analysts see a major upside for the company, backed by its AI investments. Recently, Alibaba Group Holding Limited (NYSE:BABA) launched a new AI model for image generation called Qwen VLo. The model builds on the earlier Qwen 2.5 vision language system and offers advanced features for generating and editing images. The latest image generation AI model supports both text-to-image and image-to-image generation.

Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese e-commerce platform. It is a diversified company with a major share in cloud services and a growing presence in Gen AI.