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
-
What's Next for Stocks After a Chaotic SpringA chaotic tariff policy buffets investors looking for clarity on the economy and inflation.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
