U.S.-listed Alibaba Group Holding (BABA) shares are trading notably higher Thursday after the Chinese e-commerce giant released over 100 open-source artificial intelligence (AI) models and a new text-to-video tool, according to media reports. At last check, BABA stock was up around 4%.
The new AI models, dubbed Qwen 2.5, are designed for use in a wide range of applications and sectors, and have more advanced capabilities in math and coding, according to CNBC. The text-to-video tool is based on Alibaba's AI models, allowing users to input a prompt and have a video created.
"Alibaba Cloud is investing, with unprecedented intensity, in the research and development of AI technology and the building of its global infrastructure," said Alibaba CEO Eddie Wu in a keynote address at the company's annual Apsara Conference.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Wu added that Alibaba is "rebuilding future-oriented advanced AI infrastructure from chips, servers, networks, storage, to cooling, power supply, and data centers."
The executive concluded his speech by saying we are "standing at the dawn of the AI era" and he is "truly excited."
Is Alibaba stock a buy, sell or hold?
Alibaba had a rough start to 2024, but shares have been trending higher over the past month or so, and are up more than 22% since late June. And Wall Street remains very bullish on the Chinese consumer discretionary stock.
According to S&P Global Market Intelligence, the consensus recommendation among the analysts following the stock that it tracks is a Strong Buy.
Financial services firm Jefferies is one of those with a Buy rating on BABA stock, alongside a $116 price target.
"Alibaba has multiple growth drivers in the years ahead, in our view, with its core marketplace a strong cash cow that enjoys secular growth momentum amid consumption upgrade in China, thanks to solid execution and technological strength in digitalizing the retail sector with enhanced efficiencies," says Jefferies analyst Thomas Chong.
He adds that BABA’s cloud computing unit has "clear market leadership as the backbone of digitalization across different industries."
Jefferies' $116 price target represents implied upside of roughly 32% to current levels.
Related Content
- Best Blue Chip Stocks: 21 Hedge Fund Top Picks
- Analysts' Top S&P 500 Stocks to Buy Now
- Stock Picks That Billionaires Love
-
I got laid off at 52 with $620,000 in savings, and I'm only being offered lower-paying jobsWe ask a financial planner how to handle sudden unemployment when you're older.
-
I'm a Financial Adviser: This Is How You Could Be Leaving Six Figures in Social Security on the TableClaiming Social Security is about more than filing paperwork and expecting a check. When you do it and how you do it have huge financial implications that last the rest of your life.
-
I'm a Financial Adviser: This Is How You Could Be Leaving Six Figures in Social Security on the Table
Claiming Social Security is about more than filing paperwork and expecting a check. When you do it and how you do it have huge financial implications that last the rest of your life.
-
The Big Pause: Why Are So Many Americans Afraid to Retire?While new research sheds light on Americans' growing reluctance to quit work in later life, can anything be done to help those with the retirement jitters?
-
Five Under-the-Radar Shifts Investors and Job Seekers Can't Afford to Ignore Under the OBBBBeyond the headlines: The new tax law's true impact for job seekers and investors lies in how it will transform industries and create opportunities in areas such as regional accounting, AI and outsourced business services.
-
5 Popular Investing Strategies You Should Really RethinkThere are plenty of popular sayings that help guide your investing strategies, but which ones work? We turned to the experts and historical data to find out.
-
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
-
An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't WorkWhen did you last review your will? Before kids? Before a big move? An update is essential, but regular reviews are even better. Here's why.
-
Nasdaq Ends the Week at a New High: Stock Market TodayThe S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
-
For a Richer Retirement, Follow These Five Golden RulesThese Golden Rules of Retirement Planning, developed by a financial pro with many years of experience, can help you build a plan that delivers increased income and liquid savings while also reducing risk.
