Billionaire Ken Fisher’s 10 Technology Stock Picks with Huge Upside Potential

5. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders as of Q4: 107

Fisher Asset Management’s Equity Stake: Million 

Upside Potential as of April 30: 40.59%

Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese multinational technology conglomerate with diverse operations spanning e-commerce, cloud computing, logistics, and digital services.

In the quarter ending December 31, 2024, Alibaba Group Holding Limited (NYSE:BABA) reported strong financial performance, with revenue rising 8% year-over-year to RMB 280.15 billion ($38.38 billion). Operating income surged by 83% to RMB 41.2 billion ($5.65 billion), driven by operational efficiencies and reduced intangible asset impairments. Adjusted EBITA increased by 4% to RMB 54.85 billion ($7.52 billion), while net income attributable to shareholders soared 333% to RMB 48.95 billion ($6.71 billion), bolstered by gains on equity investments and core business strength. Earnings per ADS were RMB 20.39 ($2.79), and non-GAAP diluted EPS reached RMB 21.39 ($2.93), up 13% from the previous year.

Alibaba Cloud returned to double-digit growth, with a 13% year-over-year revenue increase, reflecting robust demand for AI-related services. Looking ahead, Alibaba has pledged RMB 380 billion ($52.4 billion) over the next three years to scale its AI and cloud capabilities. CEO Eddie Wu emphasized targeted investment in foundational models, AI-native applications, and transformation initiatives, while Chairman Joe Tsai cautioned against unsustainable AI spending trends observed in other markets.

Further solidifying its AI ambitions, Alibaba Group Holding Limited (NYSE:BABA) recently launched the Qwen3 series, the third generation of its open-source AI models. Developed by its cloud computing division, the Qwen3 family includes eight models ranging from 600 million to 235 billion parameters, offering improved performance across language processing, coding, reasoning, and mathematical tasks. Benchmark tests suggest that models like Qwen3-235B and Qwen3-4B match or exceed the capabilities of leading competitors such as OpenAI’s o1, Google’s Gemini, and DeepSeek’s R1. The models also offer enhanced multilingual support and faster processing speeds.

Notably, the Qwen3-30 B-A3 B, a smaller Mixture-of-Experts model, outperforms the previous QwQ-32B, and the compact Qwen3-4B delivers comparable results to the much larger Qwen2.5-72 B-Instruct. Alibaba Group Holding Limited (NYSE:BABA) described this advancement as a pivotal step toward artificial general intelligence and artificial superintelligence, citing gains in pre-training methods and reinforcement learning as key drivers of improved model intelligence.