Alibaba Group (BABA) Is One Of The Stocks Michael Burry Is Backing In 2026

Alibaba Group Holding Limited (NYSE:BABA) is one of the 9 Stocks Big Short’s Michael Burry Is Betting On. 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 Group Holding Limited (NYSE:BABA) is one of the 9 Stocks Big Short’s Michael Burry Is Betting On.

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.

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 the cheapest AI stock.

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