Artificial intelligence (AI) has become a key growth driver for big tech, especially in cloud computing. Alibaba (BABA) and Amazon (AMZN) are two global leaders investing heavily in AI to strengthen their cloud and e-commerce businesses. Both stocks carry Strong Buy ratings from Wall Street, but the key question is which offers more upside from current levels. Using TipRanks’ Stock Comparison Tool, we compare Alibaba and Amazon to see which AI stock analysts favor now.
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Is Alibaba Stock a Good Buy Right Now?
Alibaba stock has surged more than 108% this year, fueled by solid demand for artificial intelligence (AI) infrastructure, increased AI spending, and the recent deal with semiconductor giant Nvidia (NVDA). Also, the recent plans by CEO Eddie Wu to expand the company’s $53 billion AI budget over the next three years have strengthened investor optimism.
Given these developments, Alibaba is drawing renewed attention on Wall Street. Recently, Erste Group analyst Hans Engel upgraded the stock from Hold to Buy, citing strong progress in AI and cloud computing. Engel noted that Alibaba’s push to turn its AI technology into revenue through its cloud services and in-house chip development is building long-term value.
Similarly, JPMorgan analyst Alex Yao lifted his price target on Alibaba to HK$240 from HK$165, and maintained an Overweight rating. Yao said Alibaba’s stock has outperformed peers in recent months, helped by stronger-than-expected cloud growth and management’s upbeat outlook on food delivery and quick commerce.
Is Amazon Stock a Buy, Sell, or Hold?
Amazon stock has risen about 4% this year, helped by steady growth in Amazon Web Services (AWS) and expansion in its grocery and retail units, though tariff worries have weighed slightly. The company is also increasing AI spending to strengthen AWS and open new revenue streams. Recently, Amazon introduced new AI-based Alexa+ devices to make Alexa smarter and boost growth in Prime, online shopping, and streaming.
Wall Street remains positive on the stock. TD Cowen analyst John Blackledge kept a Buy rating with a $255 price target, expecting stronger Q3 results and “solid” Q4 guidance. He forecasts AWS revenue growth of 18.3% year-over-year in Q3, driven by rising generative AI workloads as Amazon’s infrastructure investments ease supply bottlenecks.
Similarly, top Goldman Sachs analyst Eric Sheridan lifted his price target to $275 from $240, maintaining a Buy rating. Sheridan called Amazon a “preferred name” among large-cap internet stocks and a leader across major growth themes, including e-commerce, advertising, media, subscriptions, and cloud computing.
BABA or AMZN: Which Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared Alibaba and Amazon to see which AI stock analysts currently favor. Both stocks carry a Strong Buy consensus rating, but Amazon leads with 17.6% upside, while Alibaba offers 10.5% upside from current levels. Amazon also scores a Smart Score of 10, compared to 7 for Alibaba, suggesting stronger performance potential based on key data and analyst sentiment.
Conclusion: Amazon Leads on Upside and AI Strength
Both Alibaba and Amazon are well positioned to benefit from the AI boom, but analysts currently favor Amazon for its stronger growth outlook and higher potential upside. With a top Smart Score of 10 and rising momentum in its AWS and AI businesses, Amazon stands out as the better near-term pick. Alibaba, meanwhile, remains attractive for investors seeking longer-term value and exposure to China’s expanding AI market.