Tue Jan 28 20:40:00 UTC 2025: ## Alibaba Among Top Cheap AI Stocks Despite DeepSeek’s Disruptive Entry
**New York, NY – February 1, 2025** – The recent emergence of Chinese AI startup DeepSeek, with its surprisingly advanced and cost-effective AI model, sent shockwaves through the US tech market, causing a significant drop in NVIDIA’s stock price. However, this market volatility may present opportunities for investors, particularly in undervalued AI stocks.
A recent Insider Monkey report ranks Alibaba Group Holding Limited (BABA) third on its list of 12 cheap AI stocks to buy in 2025. The list, compiled using analyst data and hedge fund holdings, focuses on stocks with at least a 30% analyst upside potential. “Cheap,” in this context, refers to stocks considered undervalued by Wall Street analysts.
Alibaba, China’s largest online retailer, is leveraging AI within its e-commerce and expanding cloud businesses. Its cloud arm, Alibaba Cloud, recently unveiled an expanded suite of large language models (LLMs). The company’s cloud business saw a 7% year-over-year increase in revenue during Q2 FY2025, fueled by triple-digit growth in AI products for five consecutive quarters. BofA analyst Joyce Ju maintains a “Buy” rating on BABA, raising the price target to $117 per share.
While the report highlights Alibaba’s potential, it also suggests other AI stocks may offer even greater returns. The report’s authors base their investment strategy on mimicking the top picks of successful hedge funds, a strategy they claim has yielded a 275% return since 2014. They note that DeepSeek’s success underscores the significant potential of Chinese AI companies in 2025. Investors interested in exploring other, potentially more promising, undervalued AI stocks are encouraged to consult the full report.
First Piper 