Alibaba Has AI Written All Over It: Here’s Why Buying BABA Stock Makes Sense

With a year-to-date (YTD) gain of nearly 70%, Alibaba's (BABA) stock has outperformed the markets significantly this year. The Chinese tech giant, which was once the face of China’s brutal tech crackdown, is now back in the government’s good graces as the country backs its domestic companies amid the artificial intelligence (AI) upmanship between the U.S. and China.

Alibaba is among the prominent AI plays in China and has attracted interest from investors seeking to capitalize on the China AI story. In my previous article, I had noted that it made sense to buy the dip in BABA stock. The stock has since rebounded and only gained traction following the release of the June quarter earnings. In this article, we’ll look at the forecast for BABA stock, but before that, let’s briefly analyze its fiscal Q1 2026 earnings.