Zacks Investment Ideas feature highlights: Alibaba, Baidu, Kingsoft Cloud, Tencent, Hesai, Pony AI and WeRide - Yahoo Finance Australia

Zacks Investment Ideas feature highlights: Alibaba, Baidu, Kingsoft Cloud, Tencent, Hesai, Pony AI and WeRide

For Immediate Release

Chicago, IL – September 28, 2026 – Today, Zacks Investment Ideas feature highlights Alibaba BABA, Baidu BIDU, Kingsoft Cloud KC, Tencent TCEHY, Hesai HSAI, Pony AI PONY and WeRide WRD.

Trump-Xi Meeting Puts These 5 Chinese AI Stocks in Focus

China's artificial intelligence stocks are back in focus after President Trump hosted Chinese President Xi Jinping at the White House on Thursday, with AI emerging as one of the central topics of their meeting.

Along with trade, technology, and other geopolitical issues, Trump and Xi discussed artificial intelligence, with Xi calling for continued dialogue, cooperation, and maintaining human control over the technology.

The two countries also agreed to extend their existing trade truce by two months, although no major breakthrough on AI or technology restrictions was announced.

Meanwhile, private AI developer DeepSeek has helped demonstrate China's rapid progress in generative AI despite limits on access to advanced U.S. chips. Furthermore, many Chinese AI stocks trade at sizable valuation discounts to their U.S. counterparts, partly reflecting geopolitical and regulatory risks.

That said, here are five publicly traded Chinese AI companies worth watching as the country's AI buildout accelerates.

1. Alibaba – BABA

Alibaba arguably offers the broadest publicly traded exposure to China's AI infrastructure expansion through Alibaba Cloud, its Qwen models, and its growing portfolio of proprietary AI chips.

Alibaba recently raised roughly $10 billion, with 60% of the proceeds earmarked for global computing infrastructure and the remaining 40% targeting hyperscale AI data centers, storage, databases, and high-performance networking. The company also plans to expand Alibaba Cloud's operated global data-center capacity to more than 20 gigawatts by 2032.

AI Cloud and Compute Services revenue surged 45% year over year to more than $7 billion in Alibaba's latest quarter.

2. Baidu – BIDU

Baidu has rapidly shifted from its traditional search business to an AI-first strategy spanning cloud infrastructure, large language models (LLMs), and autonomous driving.

Most notably, Baidu's AI Cloud Infrastructure revenue jumped 50% YoY to $1.1 billion in Q2, while GPU Cloud revenue soared 283%, reflecting strong demand for computing capacity used in AI training and inference.

That makes Baidu one of the most direct large-cap Chinese plays on growing enterprise demand for AI computing.

3. Kingsoft Cloud – KC

Although much smaller than Alibaba and Baidu, Kingsoft Cloud provides perhaps the purest exposure to China's cloud infrastructure expansion among U.S.-listed Chinese stocks.