Investors favor Chinese tech stocks Alibaba and Baidu over U.S. equities, both showing significant growth

From Nasdaq: 2025-03-11 19:14:00

Investor sentiment shifts to Chinese tech stocks like Alibaba and Baidu as U.S. equities decline due to Trump’s tariffs. Alibaba introduces AI reasoning model QwQ-32B, similar to Amazon’s expansion. Baidu upgrades AI assistant “Ernie” to compete with Google Gemini. Alibaba stock up 60%, Baidu up 12%, outperforming Amazon and Alphabet.

Alibaba’s top line expected to rise 6% in FY25 and FY26, with annual sales projected to reach $147 billion. Earnings set to increase by 2% this year and 23% in FY26. Baidu’s total sales to increase 1% in FY25 and 4% in FY26, with EPS down 9% in FY25 but up 16% in FY26. Alibaba stock trades at 15X forward earnings, Baidu at 9.6X.

Baidu’s stock a Zacks Rank #2 (Buy), Alibaba a Zacks Rank #1 (Strong Buy). Positive earnings estimate revisions suggest more upside potential. A new AI reasoning model boosts Alibaba’s growth trajectory. Baidu poised for rebound with EPS estimates for FY26.

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Read more at Nasdaq: Alibaba Vs Baidu: Which Chinese Tech Stock is the Better Buy Now?