5 Stocks Big Short’s Michael Burry Is Betting On

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 115

Since the US government has made it impossible for Chinese companies to buy top-tier Nvidia chips, Alibaba has tackled this issue by using local alternatives, positioning itself as a leader in China’s rush to build and own AI technology. On May 2, Alibaba switched to Huawei chips and has already launched the DeepSeek model, resulting in lower AI costs and offering higher discounts to gain market share. However, Huawei’s plan to produce 750,000 AI chips in 2026 is insufficient to meet the high demand from major technology firms such as Alibaba, Tencent, and ByteDance.

Alibaba’s share count rose to 19.19 billion from 19.13 billion in April as the company issued new shares to its employees, reducing the value of existing shares. Despite this, BNP Paribas’s price target of $209 still implies 49% upside from here.

Additionally, Alibaba-backed Moonshot AI secured a $2 billion in funding to compete with Silicon Valley tech giants. Earlier in April 2026, Moonshot achieved a major success, bringing in over $200 million in annual subscription revenue, primarily from individuals and businesses paying to use its Kimi chatbot and AI model services.

Alibaba Group Holding Limited (NYSE:BABA) operates as a technology infrastructure and marketing solutions provider. It operates both within the People’s Republic of China and internationally. The company was founded by Chung Tsai and Yun Ma in June 1999 and is headquartered in Causeway Bay, Hong Kong.