Hua Er Jie Jian Wen·2025-10-03 09:48Group 1 - Cathie Wood's Ark Invest has increased its holdings in Chinese tech giants Alibaba and Baidu, indicating a renewed interest in these stocks after a four-year hiatus [1][2] - Ark Invest's flagship fund ARKK purchased 14,453 shares of Alibaba, valued at approximately $2.74 million, and has made significant investments in the company over the past week, totaling around $16.3 million [1][2] - Baidu also saw substantial purchases, with Ark acquiring 45,478 shares valued at about $6.4 million, alongside previous investments totaling $2.97 million and $6.9 million [1][2] Group 2 - The strong rebound of Chinese stocks, particularly Alibaba and Baidu, has been driven by their positioning as potential beneficiaries in the AI sector, with Alibaba's stock rising 112% and Baidu's by 57% this year [2][4] - Both companies are seen as well-positioned due to the increasing demand for domestic AI solutions amid tightening global export restrictions on high-end AI chips [4] - Despite significant stock price increases, Alibaba's dynamic P/E ratio remains at a reasonable 21, while Baidu's is even more attractive at 12, indicating strong cash flow from their core businesses supporting investments in AI and cloud computing [4][5] Group 3 - Analysts on Wall Street have responded positively, raising target prices for Alibaba to $230 and $245, citing the rapid growth of its AI cloud business as a key factor [5]