Alibaba Group Holding Limited (NYSE:BABA) is one of the best low risk stocks to buy in 2026. On May 20, Alibaba Group unveiled its new Zhenwu M890 AI chip, developed by its T-Head subsidiary to provide a domestic alternative to Nvidia processors amid tightening US export curbs. The chip offers three times the performance of its predecessor and is purpose-built to handle the heavy memory demands of autonomous AI agents.
Alibaba also introduced the Panjiu AL128 server system, which integrates 128 of the new accelerators into a single rack. The system is immediately available to Chinese enterprise clients through Alibaba Cloud’s Bailian platform. T-Head has shipped over 560,000 total Zhenwu units to date across industries like automotive and finance.
Alibaba (BABA) Unveils Zhenwu M890 AI Chip for Autonomous Agents
To complement the hardware, Alibaba Group Holding Limited (NYSE:BABA) debuted its Qwen 3.7-Max large language model, optimized for complex coding and agent tasks. Supported by a 380 billion yuan (~$53 billion) infrastructure investment, the company also detailed a multi-year roadmap featuring the successor V900 chip in 2027 and the J900 chip in 2028.
Alibaba Group Holding Limited (NYSE:BABA) operates as a technology infrastructure and marketing solutions provider. It operates both within the People’s Republic of China and internationally.
While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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