Top-Rated Artificial Intelligence Corporation Emerges as the Top AI Stock Worth Investing in May 2025
Revised Article:
Hot Stock Pick: Alibaba (BABA)
Alibaba, the e-commerce behemoth, has been burning up Wall Street chats with its AI-fueled surge. Here's the lowdown on this pre-IPO gem:
Alibaba's stock has seen a rollercoaster ride this year. With a 45% gain so far in 2023, it's still 12% shy of its 52-week high - all thanks to tensions between the U.S. and China over tariffs. But don't count it out just Yet! Over the past 52 weeks, the stock has skyrocketed a whopping 57%.
Q4 Earnings - Killing It!
Alibaba's Q4 results were nothing short of impressive. It clocked a profit of $2.93 per share against the market's $2.66 estimate, and revenue of $38.38 billion, trouncing analysts' $38.1 billion forecast.
Details from its core business segments reveal remarkable growth. China Commerce rose 5% YoY, Cloud Intelligence jumped 13%, International Digital Commerce experienced a notable 32% growth, while Digital Media reported an 8% surge. The only slight dip was in Cainiao, the logistics segment, which reported a 1% fall due to restructuring costs.
Operating margin for the quarter stood at 15%, up from the 9% reported in the same period last year. Adjusted EBITDA came in at $8.50 billion, showing a 4% rise YoY. As of Dec. 31, Alibaba held cash and equivalents worth $22.3 billion.
AI Heavyweight
Analysts on our website.com have named Alibaba a top AI contender, thanks to its "Strong Buy" consensus rating and a score of 5 out of 5.
Alibaba's been investing big in artificial intelligence with its Qwen3 AI models. These models sport hybrid reasoning capabilities, allowing them to switch between swift responses and deep analytical thinking, making them versatile for various applications.
The Qwen3 series comprises 8 models, ranging from 600 million to 235 billion parameters, which are open-source for developers to utilize.
Amid stiff competition from DeepSeek, Google, and OpenAI, Alibaba's models have reportedly been excelling in areas such as instruction following, mathematical reasoning, and coding assistance. Plus, Alibaba has integrated cloud computing infrastructure into its AI models, reinforcing its commitment to AI growth.
Wall Street's Word on BABA Stock
Alibaba's financial stability and AI growth have earned it plentiful support on Wall Street. A whopping 20 analysts have given a unanimous "Strong Buy" rating and a mean price target of $158.20, suggesting a potential upside of 25% from the current market price.
Disclaimer: On the date of publication, Ruchi Gupta did not hold any positions in the securities mentioned in this article. All information and data in this article is intended for informational purposes only. For more information, please review our website's Disclosure Policy here.
Extra Insights:
- MarketBeat lists the consensus rating for Alibaba as a "Buy," with some analysts upgrading to "Strong Buy" or "Outperform" ratings.
- The mean price target from various sources ranges from $150.36 (MarketBeat) to $164.57 (aggregate 12-month price targets, including specific price targets of $180 from Barclays and Morgan Stanley, $190 from Benchmark, and $170 from JP Morgan).
- The combination of Alibaba's financial stability, AI innovation, and supportive analyst sentiment make it an appealing investment opportunity, especially in the AI sector.
- Despite its stock still being nearly 12% shy of its 52-week high, the analysts on website.com have been citing Alibaba (BABA) as a top AI contender, with a "Strong Buy" consensus rating and a score of 5 out of 5.
- Amid stiff competition from DeepSeek, Google, and OpenAI, Alibaba's artificial intelligence technology, particularly the Qwen3 AI models, has been registering remarkable performance in areas such as instruction following, mathematical reasoning, and coding assistance.
- Alibaba's stock has seen a rollercoaster ride this year, but Wall Street's word on BABA stock is optimistic. Currently, 20 analysts have given a unanimous "Strong Buy" rating and a mean price target of $158.20, suggesting a potential upside of 25% from the current market price.
