The AI arms race has captured the imagination of investors for the past few years, if not more, thanks to government involvement. But for the common end user, it hasn’t been around that long. Currently, the Chinese are rushing to build their own AI empire, and Chinese stocks like Alibaba (New York Stock Exchange:Baba) is taking the lead in bringing China on board. There has been no negative impact on investors. Alibaba stock rose slightly in Tuesday morning trading.
Alibaba, along with several other funding sources, has raised at least $600 million for MiniMax, a Chinese startup focused on developing AI. It has fared very well so far and is currently valued at over $2.5 billion. Additionally, Alibaba has put money into Moonshot AI, another AI startup aiming to develop China’s AI market. There are signs that the Chinese Communist Party is also backing AI, which could lead to a greater overall focus.
tough battle
China is currently lagging behind in AI development. Back in July, Deutsche Welle It detailed that China plans to spend $15 billion in 2023 alone and is on track to spend even more so far. As for how far behind China is in AI development, it largely depends on who you ask, but “years” is a commonly used metric. In addition, China may have yet another problem in its development cycle due to export restrictions on the necessary chips. Lack of infrastructure.
What is the target price for Alibaba stock?
Turning to Wall Street, analysts have a consensus rating of Strong Buy for BABA stock, based on 15 Buys and 3 Holds assigned over the past three months, as shown in the chart below. I have. BABA’s average price target of $101.55 per share implies an upside potential of 40.87% after the stock price has declined 18.48% over the past year.
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