Alibaba’s AI and cloud infrastructure investments exceed $17 billion in the past year, with AI-related product revenue growing over 100% for nine consecutive quarters. The e-commerce giant’s future is heavily focused on AI, making it a potential bargain stock with a strong earnings multiple.

Alibaba is not just an e-commerce giant but a significant player in AI. Its cloud intelligence business is thriving, with 34% revenue growth in the latest quarter. AI-related product revenue has seen triple-digit growth for nine quarters, shaping the stock’s narrative and future trajectory.

Despite being known for e-commerce, Alibaba is deeply invested in AI. With Taobao and Tmall generating substantial revenue, Alibaba’s AI future is promising. The company’s ability to spend heavily on AI and cloud infrastructure while remaining profitable sets it apart in the market.

Alibaba’s Singles Day promotion and flagship e-commerce businesses play a crucial role in its revenue generation. With a strong adjusted EBITDA margin and consistent stock buybacks, Alibaba’s financial stability allows for significant investments in AI and cloud infrastructure.

Amidst trade war tensions, Alibaba’s investments in AI chips position it as a key player. The company’s financial strength enables it to make substantial wagers on AI, presenting growth opportunities in a competitive market.

Alibaba’s stock has surged 75% in 2025, showcasing its potential as an AI stock with room for further growth. At less than 16 times next fiscal year’s profit target, it presents an attractive investment opportunity for those seeking gains in 2026.

Read more at Yahoo Finance: This Artificial Intelligence Stock Is an Absolute Bargain Right Now, and It Could Skyrocket in 2026