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) -7.400 (-1.490%) Short selling $1.08B; Ratio 47.391% , 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. Related NewsAlipay Launches Mainland China's First 'Payment Integration Skill' Supporting Natural Language Payment AccessUnder 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) -0.800 (-0.730%) Short selling $180.79M; Ratio 150.451% , through Kunlunxin, appears to be a local chip competitor, but its core search business faces higher AI disruption risks. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-02 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)Related News G Sachs: Cloud and Data Centers Top Picks Among China Internet Sub-sectors; Recommends Alibaba (09988.HK) and Kingsoft Cloud (03896.HK)
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