The recognition of Alibaba’s AI prowess by global investors has further drawn the market’s attention to Chinese AI companies. Some are concerned, however, about intense local competition, while others are worried about the impact of the US government’s export controls on semiconductor chips to China. Fund managers are also exploring opportunities across the AI and semiconductor value chain beyond Alibaba.
Once known primarily as an e-commerce giant, Alibaba Group Holding is now increasingly viewed by investors as a full-stack AI company, rapidly advancing both the front end and back end of AI applications.
The company’s share price has almost doubled this year (as at Oct 15), but it is still considered undervalued and was recently touted by Australian fund house Alluvium Asset Management as “one of the cheapest ways to play AI in the entire world”.
