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Is PDD Holdings (PDD) Zhang Lei’s Top Pick?

PDD Holdings Inc. (NASDAQ:PDD) is Zhang Lei’s largest holding, accounting for 27.76% ($1.14 billion) of the billionaire’s total portfolio. We recently published a list of youngest hedge fund billionaires and their top stock picks.

As of February 13, 2026, about 70% of analysts who cover PDD Holdings Inc. (NASDAQ:PDD) are still bullish. The consensus price target of nearly $150 indicates a 50% upside, suggesting that investor confidence remains strong despite regulatory and competitive headwinds.

This optimism stands in contrast to Citi’s more cautious tone on January 28, 2026, when the firm lowered its price target on PDD Holdings Inc. (NASDAQ:PDD) from $170 to $142 and kept a ‘Neutral’ rating. Citi noted that improving U.S. traffic at Temu helped partially offset the pressure on profitability in 2026 amid slowing domestic retail demand and rising expenses.

Previously, on January 21, 2026, Citi described a Rmb 100,000 Shanghai tax fine as “smaller-than-feared,” arguing that it was the removal of an overhang. Before that, on January 20, 2026, after it heard about a growing regulatory investigation, Citi issued a downside 30-day catalyst watch.

Denys Prykhodov / Shutterstock.com

Separately, on January 15, 2026, Morgan Stanley reiterated an ‘Overweight’ rating on PDD Holdings Inc. (NASDAQ:PDD) and a $148 price target while removing the stock from its “Top Pick” list due to growing internet regulatory risks in China.

PDD Holdings, Inc., a global commerce group, operates digital marketplaces supported by integrated sourcing, logistics, and fulfillment networks, with the aim of enhancing productivity for merchants and consumers across domestic and international markets.

While we acknowledge the potential of PDD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PDD and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: What Are the Best Stocks to Buy Right Now? and 10 Stocks Under $1 That Will Explode.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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