Alibaba Tops Goldman's List of Preferred Chinese Stocks for Global Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 20 2025
0mins
Should l Buy BABA?
Source: Benzinga
Goldman Sachs' Investment Focus: Goldman Sachs encourages investors to target Chinese companies expanding internationally, highlighting factors like a weaker yuan and China's robust supply chains as growth drivers. They identified 25 key companies, including Alibaba, CATL, and BYD, which have outperformed major indices this year.
Earnings Growth from Overseas Expansion: The bank anticipates that these companies' international growth will boost earnings by approximately 1.5% annually through 2028, with notable increases in overseas revenue for Alibaba and CATL, despite potential short-term impacts from U.S. tariffs.
Alibaba's Stock Performance: Alibaba's stock has surged nearly 97% year-to-date, driven by advancements in AI and cloud services, outperforming the NYSE Composite index. Analysts from Goldman Sachs, Daiwa Securities, and CICC express optimism about Alibaba's growth prospects in cloud revenue and e-commerce recovery.
Market Reactions and Forecasts: Despite a slight decline in premarket trading, analysts project significant growth in Alibaba's cloud revenue, with expectations of 30% year-over-year growth in the upcoming fiscal quarter, supported by new AI products and improved operational efficiencies.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 121.980
Low
180.00
Averages
203.09
High
230.00
Current: 121.980
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Overall Revenue Stagnation: The company's total revenue for 2025 reached 880.9 billion yuan, up only 2%, while the growth rate of its ICT infrastructure segment slowed from 4.9% in 2024 to 2.6%, reflecting a deceleration in key business areas.
- Innovative R&D Investment: Huawei's R&D expenditure in 2025 hit a record 192.3 billion yuan, accounting for 21.8% of total revenue; however, the lack of significant revenue growth from its self-developed AI chips highlights challenges in achieving technological self-sufficiency.
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- Massive Market Potential: According to Markets.us, the agentic AI market is projected to grow from $5.2 billion in 2024 to $197 billion by 2034, indicating strong demand from businesses for automation and reduced manual labor, with Alibaba positioned at the forefront of this growth.
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- Wukong Platform Advantage: Alibaba's Wukong platform is designed to coordinate multiple AI agents, providing a multi-agent operating system that enhances business workflow management, thereby improving operational efficiency and reducing labor costs for enterprises.
- Accio Work Application: The newly launched Accio Work platform functions as a 'task force' capable of autonomously handling complex business operations, particularly for small and medium-sized enterprises, allowing them to delegate most routine tasks to AI agents and freeing up employee time for more critical activities.
- Market Competition Risks: While Alibaba demonstrates strong potential in the agentic AI space, it faces intense competition from global players like Palantir, Microsoft, and Amazon, along with execution risks and weak investor sentiment towards the Chinese tech sector, which could impact its market performance.
See More
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- Industry-Specific AI Development: Chinese companies are shifting focus from large language models to industry-specific artificial intelligence to drive revenue growth, indicating a rising demand for customized solutions in the market.
- Alibaba Platform Upgrade: Alibaba launched the AI-integrated Accio Work platform, capable of autonomously processing customs paperwork and calculating profit margins, with expectations to increase monthly active users from millions to tens of millions, enhancing its competitiveness in the global market.
- Intellectual Property Trading Trend: China is promoting patent trading at a high level, as showcased at the Zhongguancun Forum, reflecting the importance of intellectual property and market potential for businesses.
- Robot Technology Innovation: Linkerbot focuses on humanoid robot development, aiming to map all basic human hand skills within three years, with a goal to reduce robot costs to below that of an iPhone, demonstrating a pursuit of practical technology applications.
See More
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See More
