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<Research>M Stanley: Alibaba (BABA.US) Replaces TENCENT (00700.HK) as Top Pick, Mastering Full AI Stack via In-house Chips
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Possessing a full AI stack materially enhances the likelihood of becoming an AI winner, Morgan Stanley commented in a research report. Self-developed chips also help mitigate competition and regulatory risks. The broker upgraded Alibaba (BABA.US) to its top pick, replacing TENCENT (00700.HK), despite short-term profit pressures. The broker believed that mastering a full AI stack (covering chips, cloud, models, applications) can form a structural advantage, enabling internet companies to become AI winners, as demonstrated by Alphabet in the US. Under this premise, the broker viewed Alibaba as a global AI winner, owning top-tier self-developed AI chips, China's number one and the world's fourth-largest cloud infrastructure provider, the world's most widely adopted open-weight foundational model, and consumer-centric applications. Although Tencent is lagging, it benefits from the advantages of the WeChat ecosystem, making it a "late starter but fast catcher". BIDU-SW (09888.HK), through Kunlunxin, appears to be a local chip competitor, but its core search business faces higher AI disruption risks. AASTOCKS Financial News Website: www.aastocks.com |
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