5 Best AI Stocks with Huge Upside Potential

1. Alibaba Group Holding Limited (NYSE:BABA)

Alibaba Group Holding Limited (NYSE:BABA) is one of the best AI stocks with huge upside potential. On March 16, Bloomberg reported that Alibaba is consolidating its AI operations into a new business unit called Alibaba Token Hub. Led directly by CEO Eddie Wu, this division will integrate the research team behind the flagship Qwen models with consumer-facing applications, the DingTalk communication platform, and Quark-branded hardware like smart glasses.

The restructuring aims to improve coordination between researchers and product developers while signaling a shift toward monetizing AI through enterprise-facing services and computing units. The revamp follows the sudden departure of Qwen’s lead researcher, Junyang Lin, and comes as Chinese tech firms struggle to match the profitability of Western rivals like OpenAI.

Unlike international markets, Chinese consumers are often reluctant to pay for software subscriptions, and many domestic models remain open-source. By naming the unit after ‘tokens’ (the standard units of AI data processing), Alibaba is emphasizing a business model built around delivering and applying computing power to generate revenue. Moving forward, Alibaba Group Holding Limited (NYSE:BABA) plans to launch a dedicated agentic AI service for corporate clients, potentially integrating it with core platforms like Taobao and Alipay to streamline tasks from search to checkout.

Alibaba Group Holding Limited (NYSE:BABA), through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers in the People’s Republic of China and internationally.

While we acknowledge the potential of BABA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BABA and that has 100x upside potential, check out our report about the cheapest AI stock.

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