"Mad Money host Jim Cramer had some nice things to say about two of China's top tech innovators in a recent episode of the Lightning Round. Notably, he said that Baidu ( NASDAQ:BIDU) and Alibaba ( NASDAQ:BABA) were "good." And while shares of both Chinese AI innovators have gained significant traction over the past year, it's worth mentioning that both names are well off their all-time highs and have since slipped significantly off their recent 52-week highs."
"Geopolitical risks in investing in Chinese stocks will always be there, even as relations between President Trump and Xi look to improve further going into the new year. However, I believe that most of such risks are already priced in. And as the AI names pull back further from here after a rocky run into mid-November, there might be an opportunity to snag two of the names that might have the most room to run at the hands of new developments."
"Undoubtedly, Baidu and Alibaba have really upped their game when it comes to AI models. And as the Chinese AI race plays out, one has to wonder if the two juggernauts have what it takes to make the AI race between their U.S. rivals (think some of the Mag Seven names) a little closer. It's hard to tell, as America looks to pull ahead further."
Jim Cramer described Baidu and Alibaba as "good" during a Lightning Round segment. Shares of both Chinese AI companies have gained traction over the past year but remain well below their all-time and recent 52-week highs. Recent AI developments, combined with share declines, have prompted renewed investor interest in the pair. Chinese AI stocks currently trade at cheaper multiples and could provide diversification away from U.S. tech exposure. Geopolitical risks persist but appear largely priced into valuations. Baidu and Alibaba have significantly advanced their AI models and could narrow the gap with U.S. rivals, though the outcome is uncertain.
Read at 24/7 Wall St.
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