We recently published a list of 15 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against other trending AI stocks on latest news and ratings.
According to Anthropic CEO Dario Amodei, artificial intelligence models capable of performing at human levels may emerge as early as 2026. That is, if current advancements hold steady. Amodei compares the path to general artificial intelligence with educational stages. Currently, he notes that we’re starting to get to PhD level, while last year we were at the undergraduate level.
“If you just eyeball the rate at which these capabilities are increasing, it does make you think that we’ll get there by 2026 or 2027”.
He also acknowledged that possible setbacks may exist, such as data shortages, limitations in scaling AI clusters, and potential geopolitical issues impacting microchip supply chains. Previously, OpenAI CEO Sam Altman made a similar claim, noting that artificial general intelligence can be achieved in five years with the current hardware. According to Altman, the benchmark would pose “surprisingly little” change to society.
Latest Developments in AI
How fast we can get to AGI is a debate of its own. In the meantime, let’s take a closer look at the latest developments and innovations shaping the world of artificial intelligence. In its first, a robot has been trained by watching videos of seasoned surgeons, performing the same surgical procedures skillfully as human doctors. The findings, led by Johns Hopkins University researchers, were illuminated at the Conference on Robot Learning in Munich, a top event for robotics and machine learning.
“It’s really magical to have this model and all we do is feed it camera input and it can predict the robotic movements needed for surgery. We believe this marks a significant step forward toward a new frontier in medical robotics.”
In other news, CNBC’s David Faber reports that Elon Musk’s artificial intelligence company xAI is raising up to $6 billion at a $50 billion valuation. Musk’s AI startup seeks to “understand the true nature of the universe. Last year, xAI released a chatbot named Grok, modeled after “The Hitchhiker’s Guide to the Galaxy.” The chatbot aims to directly compete with companies including ChatGPT creator OpenAI.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Alibaba Group Holding Limited (BABA)'s AI Push: Cloud Growth Amidst Revenue Challenges
An e-commerce platform displaying a wide range of products to customers online.
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational conglomerate operating across e-commerce, cloud computing, digital media, and financial technology (“fintech”). The company leverages artificial intelligence in its e-commerce business, having recently launched more than a hundred new AI models as part of its AI push.
On November 15, Alibaba Group Holding Limited (NYSE:BABA) reported better-than-expected quarterly earnings of $2.15 a share for the quarter ending September 30. However, total revenue fell short of expectations. According to FactSet, the company reported adjusted earnings of 15.06 yuan ($2.15) per American-listed share, with sales totaling 236.5 billion yuan ($33.7 billion). Wall Street analysts had forecast adjusted earnings of 14.82 yuan per share on revenues of 239.5 billion yuan. Alibaba’s falling sales imply businesses in China are facing challenges as customers remain cautious with their spending. Amidst these results, an AI boost to the company’s cloud business serves as positive news for the company. Alibaba’s cloud business saw a 7% increase in revenues, reaching 29.6 billion yuan ($4.2 billion) in the fiscal second quarter, compared to the same quarter last year.
“Growth in our Cloud business accelerated from prior quarters, with revenues from public cloud products growing in double digits and AI-related product revenue delivering triple-digit growth”.
Overall, BABA ranks 4th on our list of trending AI stocks on latest news and ratings. While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
