Jefferies Reaffirms Alibaba Group (BABA) on AI Cloud Leadership

Alibaba Group Holding Limited (NYSE:BABA) ranks among the AI stocks beyond NVIDIA that could surge in 2026. Despite recent stock price swings drawing investor attention in recent trading sessions, Jefferies reiterated Alibaba Group Holding Limited (NYSE:BABA) as its top pick in the Chinese internet market on June 12.

According to Jefferies analysts, Alibaba’s share price has fluctuated of late as newsflow and industry trends have become more apparent. That said, the firm stressed that AliCloud’s competitive advantage remained untouched, thanks to full-stack capabilities that set the cloud computing segment apart from peers. Analysts also noted that the company’s Model-as-a-Service (MaaS) division showed strong revenue and margins.

Concerning the annual 618 shopping festival, Jefferies remarked that the year is not shaping up to be a memorable one for the promotional festival, though this trend is consistent with prior expert calls. The firm recognized that 618 marketing corrections are taking place across platforms, not only on Alibaba Group Holding Limited (NYSE:BABA).

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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