Alibaba's chairman Joe Tsai posed some philosophical questions about the race to artificial general intelligence at CNBC's CONVERGE LIVE event on Wednesday. ➡️ "The one thing that I know is the brain is the most power efficient," Tsai said, commenting on AI's large carbon footprint.
In a swing of events, investor sentiment has shifted toward Chinese tech stocks in recent weeks, with Alibaba (BABA) and Baidu (BIDU) standing out in particular.
"Mundane research" can be done by machines, but human beings will still play a role, Alibaba's Chairman Joe Tsai said Wednesday at CNBC's CONVERGE LIVE.
Chinese President Xi Jinping held a closed-door symposium with prominent entrepreneurs last month in a rare show of support for the sector.
Alibaba is positioned to dominate China's AI market with its groundbreaking, highly efficient QwQ-32B model, surpassing larger models in performance at a fraction of the size and cost. The company's AI success is driven by extensive resources, top-tier domestic talent, state backing, and a robust cloud ecosystem, significantly enhancing its competitive advantage. China's strategic push for semiconductor self-sufficiency reduces Alibaba's dependency on foreign chipmakers, further strengthening its long-term AI capabilities.
Chinese artificial intelligence start-up Manus AI announced on Tuesday a strategic partnership with the team behind Alibaba's Qwen AI models.
Alibaba's turnaround is proving to be successful. Alibaba's strategies look sound to drive long-term growth. The reasonable valuation leaves more room to the upside for the stock.
The uncertain global macroeconomic outlook and the Chinese government's softening stance surrounding Big Techs have already triggered the lifting market sentiments surrounding Chinese ADRs. Combined with the government's intensified fiscal stimulus, BABA's well diversified capabilities, and robust commerce/cloud prospects, we believe that there remains a triple digit upside potential ahead. This is significantly aided by the stock's cheap valuations, rich balance sheet, and robust shareholder returns through share retirement.
Alibaba Group Holding Limited's price rise this year has been nothing short of exceptional, leaving behind the Shanghai Composite Index and even its peers like PDD and JD.com. BABA's dogged efforts at restructuring and sharpening its strategic focus appear to be paying off. Its focus on both domestic e-commerce and cloud services shows up in recent developments. Regarding the cloud, Alibaba has made strides with AI-related developments and its e-commerce division has also seen a turnaround.
Alibaba (BABA) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Alibaba, PGJ, FNS, CGRO and Nightview are included in this Analyst Blog.