While American stocks have struggled, their Chinese counterparts are gaining momentum, driven by the country’s resilient economy amid ongoing trade tensions.
Notably, Chinese stocks are rising due to several key factors, including government stimulus, undervalued equities attracting investors, a surging technology sector, particularly in artificial intelligence (AI) and electric vehicles, and a shift in global funds amid unease from United States trade tariffs.
In this case, Finbold has identified two Chinese stocks worth buying right now. They show strong growth potential, with current market momentum serving as a key catalyst.
Picks for you
Alibaba (NYSE: BABA)
The Chinese e-commerce giant cannot be overlooked after a stellar start to 2025, regaining its spotlight thanks to catalysts such as its strong financial performance and entry into the booming AI scene.
Alibaba (NYSE: BABA) has recently shifted its focus toward prioritizing consumers over merchants, lowering prices, and integrating AI. For instance, in Q4 2024, the firm’s Taobao and Tmall platforms recorded a 9% increase in customer management revenue, while international e-commerce revenue surged 32% as it targets global expansion.
Beyond its e-commerce segment, Alibaba also aims to benefit from the growing AI and cloud computing sectors. The AI market is projected to expand from $244 billion in 2025 to $827 billion by 2030, and Alibaba is investing over $50 billion in AI infrastructure.
The technology giant has also announced key partnerships, such as its collaboration with Apple, which will integrate Alibaba’s AI features into iPhones sold in China. At the same time, reports suggest that Alibaba is considering investing in DeepSeek, an emerging AI player aiming to compete with established entities like OpenAI’s ChatGPT.
On the other hand, while indications suggest that the Chinese government may support the country’s technology sector, risks remain for Alibaba.
The company faces regulatory uncertainty, geopolitical tensions, and potential restrictions from the U.S. government that could impact investor sentiment.
As of press time, BABA was trading at $135.14, ending the last session down 1.2%. Year-to-date, the stock is up nearly 60%.
Meanwhile, a consensus of 16 Wall Street analysts at TipRanks with a ‘Strong Buy’ rating projects Alibaba stock will trade at an average price of $165 over the next 12 months.
XPeng (NYSE: XPEV)
The Chinese EV company is another high-flying equity driven by strategic partnerships, improving delivery numbers, and adopting new technologies such as AI.
XPeng (NYSE: XPEV) presents a compelling buying opportunity, particularly due to its focus on AI-driven smart mobility. To this end, the EV maker plans to launch its Turing AI Smart Driving system in 2025, aiming to enhance vehicle automation, safety, and personalization.
In addition to technological advancements, XPeng is expanding globally. It recently entered the UK market and launched pre-sales for its first right-hand-drive model.
At the same time, sales momentum remains strong, with 30,453 Smart EVs delivered in February, marking a staggering 570% year-over-year increase. The XPENG MONA M03 has exceeded 15,000 monthly units for three consecutive months, while the XPENG P7+ surpassed 30,000 within three months of launch.
Strategic partnerships further strengthen XPeng’s ecosystem. For instance, a deal with BP grants access to over 23,000 chargers in China. At the same time, a Volkswagen agreement integrates charging networks, forming one of China’s largest super-fast EV charging systems with over 20,000 chargers in 420 cities.
At the time of reporting, XPEV was trading at $21.80, ending the last trading day down about 1%. Year-to-date, the stock has surged by a massive 88%.
Meanwhile, a consensus of Wall Street analysts on TipRanks projects that XPEV will likely trade at $23.74 over the next 12 months, with a ‘Moderate Buy’ rating.
Featured image via Shutterstock
