Core Viewpoint - The competition in artificial intelligence is intensifying globally, with companies outside the U.S. starting to catch up, particularly in chipmaking and AI engines, which may deter some investors for unfounded reasons [1] Group 1: Alibaba's Position and Market Reaction - Alibaba Group's stock has risen by 11% over the past month, contrasting with NVIDIA's decline of nearly 3% following Alibaba's announcement of developing its own AI chip [7][8] - The market's positive reaction to Alibaba's new chip development indicates a bullish outlook for the company, suggesting a compelling reason for investors to consider buying [8] - Analysts forecast a potential upside of 18.33% for Alibaba's stock, with a 12-month price target of $162.38, based on 14 analyst ratings [10][11] Group 2: Strategic Developments and Future Outlook - Alibaba's move to develop its own AI chip comes in response to NVIDIA's decision to halt sales of H20 chips to China, indicating a strategic pivot to fill the demand gap left by NVIDIA [6][8] - The company has established data centers across Asia, positioning itself to benefit from the region's growing middle class, which is expected to provide strong tailwinds for future growth [10] - Historical stock performance shows that Alibaba's shares reached an all-time high of over $310 three years ago, suggesting the potential for revisiting or surpassing previous highs [9] Group 3: Institutional Interest and Market Sentiment - Institutional buying activity has reached $7.3 billion over the past quarter, signaling confidence in Alibaba's future fundamentals [12] - Despite the current Moderate Buy rating among analysts, there is a perception that this rating is conservative, driven by market fears regarding Chinese stocks [11][13] - The overall sentiment suggests that Alibaba is well-positioned in the AI race, with significant upside potential as the market begins to recognize its developments [13]