Group 1 - Alibaba is not primarily viewed as an AI stock, but rather as a leading e-commerce company in China, known for its significant role in creating shopping events like Singles Day [2][6] - The company is heavily investing in AI, with over $17 billion allocated to AI and cloud infrastructure in the past year, indicating a strong commitment to this technology [8] - Alibaba's cloud intelligence business is experiencing substantial growth, with a 34% revenue increase in the latest quarter, significantly outpacing the overall business growth of 15% [4][8] Group 2 - AI-related product revenue for Alibaba has shown remarkable performance, achieving nine consecutive quarters of triple-digit year-over-year growth, which is reshaping the company's stock narrative [5][8] - The e-commerce segments Taobao and Tmall contributed 45% of Alibaba's consolidated revenue in fiscal 2025, while also generating more than 100% of its consolidated adjusted EBITDA [7] - Unlike many companies investing in AI, Alibaba is not incurring debt or diluting stock, as its profitable e-commerce business is funding its AI initiatives [7][8]
This Artificial Intelligence Stock Is an Absolute Bargain Right Now, and It Could Skyrocket in 2026