5 Cheap AI Stocks to Buy According to Analysts

3. Alibaba Group Holding Limited (NYSE:BABA)

Average Upside Potential: 44.69%

Alibaba Group Holding Limited (NYSE:BABA) is one of the cheap AI stocks to buy according to analysts. On May 13, Alibaba announced financial results for FQ4 2026, reporting quarterly revenue of RMB 243,380 million (a 3% year-over-year increase). The Cloud Intelligence Group’s external revenue growth accelerated to 40%, with AI-related product revenue delivering triple-digit year-over-year growth for the eleventh consecutive quarter and accounting for 30% of the cloud segment’s revenue.

The company’s full-stack AI investments have transitioned from incubation to large-scale commercialization across models, cloud infrastructure, and applications. Alibaba expanded its Qwen LLM portfolio with the launch of Qwen3.6-Plus, which boasts a 1-million token context window and advanced coding capabilities. Additionally, the company introduced specialized models like HappyOyster and HappyHorse, alongside the widespread deployment of over 100,000 proprietary Zhenwu AI inference chips by its T-Head semiconductor subsidiary.

In the applications and e-commerce domains, Alibaba Group Holding Limited (NYSE:BABA) fully integrated its e-commerce capabilities into the consumer-facing Qwen app and deployed multiple enterprise AI agents. These include the Qwen Shopping Assistant for consumer order management, Wukong for AI-native merchant operations, and Accio Work to automate the cross-border operating lifecycle for small and medium-sized businesses on Alibaba.com.

Alibaba Group Holding Limited (NYSE:BABA) is an AI-driven technology infrastructure and marketing solutions provider that integrates its Tongyi Qianwen (Qwen) LLM models across its cloud and e-commerce platforms.