Zacks Investment Ideas feature highlights: Alibaba, Baidu, Nvidia, CQQQ and FXI

 For Immediate Release Chicago, IL – September 26, 2025– Today, Zacks Investment Ideas feature highlights Alibaba BABA, Baidu BIDU, Nvidia's NVDA, Invesco China Technology CQQQ ETF and iShares China Large-Cap FXI.Chase the Surge in Alibaba or Baidu Stocks?Along with U.S. equities, favorable market sentiment has led to a resurgence in Chinese tech stocks with Alibaba and Baidu leading the way.Reigniting the buzz, the U.S. and China reached an ongoing framework trade agreement back in May, offsetting previous tariff concerns that had compressed Chinese equities.Fast forward four months, and AI-driven optimism has kept propelling Alibaba and Baidu stock, which have both soared over +30% since the trade deal was announced between the world's two largest economies on May 12.With BABA and BIDU printing fresh 52-week highs of well over $100 a share, it's certainly a worthy topic of whether investors should chase the surge in Alibaba or Baidu stock.Alibaba & Baidu's AI Expansion  Driving bullish sentiment and setting Alibaba and Baidu's AI endeavors apart is that they have produced multimodal AI models, like many of their big tech counterparts in the U.S. These AI systems can understand and generate multiple types of data (modalities) for text, vision, audio, video, and sensor components. As beneficiaries of China's broader push into AI, the country's restrictions on Nvidia's AI chips have opened the door for Alibaba and Baidu to shine.Alibaba most recently unveiled its powerful new AI model, "Qwen3-Max", which has over a trillion parameters. Setting its sights on global data center expansion and striking a strategic partnership with one of the largest telecom companies in China (China Unicom), Alibaba has pledged to spend more than $50 billion on AI in the next three years.Similarly, Baidu has produced several advanced AI systems stemming from its multimodal large language model (LLM) ERNIE. Furthermore, like Alibaba, Baidu deploys its own internally designed AI chips, with the company securing a strategic deal with China Merchants Group (CMG) to deploy AI agents and digital employees across key industrial sectors.Tracking Alibaba & Baidu's OutlookBased on Zacks' estimates, Alibaba's total sales are expected to increase 4% in its current fiscal 2026 and are projected to rise another 11% in FY27 to $160.04 billion.Reflective of higher operating costs, Alibaba's annual earnings are expected to decrease 14% in FY26 to $7.72 per share compared to EPS of $9.01 in its FY25. However, the e-commerce leader's FY27 EPS is projected to rebound and climb 39% to $10.73.Pivoting to Baidu, its top line is expected to contract 1% in its current FY25, but is projected to rebound and expand 4% in FY26 to $19.14 billion.Following a record year for earnings, Baidu's EPS is currently slated to drop 28% to $7.51 from an all-time peak of $10.53 in FY24. Optimistically, the internet search giant's FY26 EPS is projected to stabilize and rebound 9% to $8.19.Monitoring Alibaba & Baidu's ValuationLeading to the exhilarating surge in Alibaba and Baidu stock had been their deflated valuations, with BABA and BIDU still trading at reasonable forward P/E multiples of 21.8X and 15.9X, respectively. That said, the extended rally has moved them swiftly off their recent lows of under 12X forward earnings, which may have been enticing value investors.In contrast to many of the growth-oriented big tech stocks in the U.S., Alibaba and Baidu trade at very respectable price to forward sales multiples, and are still at the low end of a decade-long scope in this regard, with P/S ratios under 3X.Bottom Line & ETFs to WatchWith Alibaba and Baidu stock trading well over $100 a share, it may be less tempting to buy, although both land a Zacks Rank #3 (Hold) at the moment. AI expansion should keep BABA and BIDU in the conversation of suitable long-term investments, but better buying opportunities could be ahead after such a rapid surge over the last few months.For investors or traders who may be looking for indirect ways to get exposure to the broader rally in Chinese stocks, the Invesco China Technology ETF and the iShares China Large-Cap ETF are ways to do so.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Baidu, Inc. (BIDU): Free Stock Analysis Report iShares China Large-Cap ETF (FXI): ETF Research Reports Invesco China Technology ETF (CQQQ): ETF Research Reports Alibaba Group Holding Limited (BABA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks