Alibaba or Amazon: Which Stock Stands to Win the AI and E-Commerce Race?

Artificial intelligence is reshaping the competitive landscape of cloud computing and retail, with Alibaba and Amazon emerging as frontrunners. Alibaba's $53 billion commitment to AI and cloud infrastructure over the next three years underscores its aggressive stance, while Amazon continues to pour tens of billions into data center expansion and generative AI services.

Alibaba's stock has surged 36% year-to-date, yet it remains attractively priced at a 15x earnings multiple—a discount to global peers like Amazon. The company's Q4 FY25 cloud revenue jumped 18% year-over-year to RMB30.1 billion, signaling early returns on its tech investments.

Amazon's relentless innovation in logistics and AWS positions it as a formidable contender. Both companies are betting big on AI-driven efficiency gains, but Alibaba's valuation gap and China's untapped cloud potential present a compelling risk-reward scenario.