Alibaba Group (NYSE: BABA) has faced challenges but recent results show signs of progress. Cloud revenue is up 26% year over year, with AI-related revenue growing at triple-digit rates. The company is also investing in domestic AI chips to reduce supply chain risks. Analysts are beginning to raise price targets, signaling a potential shift in sentiment towards Alibaba.

While Alibaba still faces risks, its cloud business and AI adoption are promising. The company’s strategic resilience with domestic chip development is a positive move. With sentiment starting to improve and the stock trading at a low price-to-sales ratio, long-term investors may find reasons to cautiously consider holding Alibaba stock.

Read more at Nasdaq: Why I’m Cautiously Optimistic About Alibaba Stock