Alibaba (BABA) Expands AI Capabilities as Benchmark Reaffirms Buy Rating

Alibaba Group Holding Limited (NYSE:BABA) ranks among the best most active stocks to buy according to hedge funds. On May 20, Alibaba Group Holding Limited (NYSE:BABA) unveiled a significant overhaul to its AI stack, which includes cloud infrastructure, model-based services, AI processors, and foundation models, to assist clients in developing and deploying AI agents. Notably, at the Alibaba Cloud Summit, the company revealed Qwen3.7-Max, its most recent LLM designed for agentic programming, intricate reasoning, and long-term task performance.

The model is tailored for agent platforms such as OpenClaw, Hermes Agent, and Claude Code, and is capable of handling over 1,000 tool calls without experiencing performance decrease for as long as 35 hours.

Additionally, on May 14, Benchmark reaffirmed its $220 price objective and Buy rating on Alibaba Group Holding Limited (NYSE:BABA). Alibaba’s fourth-quarter fiscal 2026 results, according to the firm, came in below consensus but were generally consistent with forecasts. Due to robust enterprise demand, AI-related revenue grew at triple digits, while external AI cloud revenue surged to roughly 40% year-over-year.

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.

While we acknowledge the risk and potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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