This AI Stock Is Up 50% in 2025. Is It Too Late to Buy?

The artificial intelligence (AI) euphoria-driven rally in U.S. stocks has more or less stalled and investors have been instead questioning Big Tech companies’ burgeoning AI capex as we saw during Q4 earnings calls. However, there are signs of the AI rally moving to China ever since DeepSeek revealed that its AI model performed better than AI models from the likes of Meta Platforms (META) and OpenAI.

While China’s prowess in manufacturing is well-known, DeepSeek claims to have developed its AI model at a fraction of the cost. Amid the rally in Chinese tech shares, Alibaba (BABA) stands out with its almost 50% year-to-date gain. In this article, we’ll examine whether Alibaba is a buy or a sell now after the mammoth rally. But first, let’s look at the factors that have driven BABA stock higher.