1 AI Stock Wall Street Thinks Will Soar 64% in 12 Months (And Why It Outshines Nvidia and Palantir)

In the race to dominate the AI revolution, Wall Street analysts have identified a clear outlier: JD.com (NASDAQ: JD), the Chinese e-commerce giant dubbed the "Amazon of China." With a projected 64% price increase over the next 12 months, JD.com's valuation, growth trajectory, and AI infrastructure investments are positioning it as a compelling alternative to high-flying names like Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR).

Valuation: The Undervalued Powerhouse

JD.com trades at a mere 9 times forward earnings, a stark contrast to Nvidia's 38x and Palantir's eye-popping 263x. This valuation gap is not a sign of weakness but a reflection of market skepticism about China-based tech stocks. However, analysts at LSEG see this as an opportunity. With 37 analysts rating JD as a "strong buy" or "buy," and no sell ratings, the stock remains 30% below its 12-month high, suggesting significant upside.

For context, Nvidia's valuation reflects its dominance in AI chips but also its premium pricing. Palantir, meanwhile, trades at a multiple that assumes its Foundry platform will scale like a software giant—yet its price-to-sales ratio of 114x is unsustainable for most investors. JD.com's combination of low cost and consistent profitability (16% revenue growth in Q1 2025) makes it a safer bet for long-term capital appreciation.

Growth Potential: E-commerce Meets AI Synergy

JD.com's core business—e-commerce and logistics—is a cash-cow, but its AI investments are unlocking new revenue streams. The company's 43.6% stake in JD Technology, established in 2021, now houses cutting-edge AI and cloud computing initiatives. These include:
- Yanshi AI Development Computing Platform: Supports third-party large models (e.g., DeepSeek) and offers 200+ tools for custom AI development.
- Super Intelligence Cluster: Scales to 100,000 GPUs, rivaling even the most advanced data centers.
- vGPU Optimization: Boosts DeepSeek model processing speeds by 50%, reducing training costs.

Compare this to Nvidia's Blackwell architecture, which focuses on hardware performance but lacks the integrated ecosystem JD.com is building. Palantir's Foundry platform, while innovative, struggles with scalability and geographic reach. JD's AI infrastructure is not just about speed—it's about operational integration, from healthcare (via JD Health) to retail (via AI-powered supply chains).

AI Infrastructure Leadership: Building the Future, Not Just Selling Chips

Nvidia's dominance in AI chips is unmatched, but it's a hardware-centric play. JD.com is taking a holistic approach:
- Partnerships: Collaborations with Fung Retailing (AI retail solutions), Zebra Technologies (IoT logistics), and startups via the AI Catapult accelerator.
- Global Supply Chain Innovation Centre (GSIC): Leverages NLP, image recognition, and machine learning to predict demand and optimize delivery networks.
- Cloud Ecosystem: JD Cloud's Yunhai AI Storage and Super Intelligence Cluster provide end-to-end AI solutions for businesses, reducing reliance on third-party platforms.

Palantir's Foundry platform, while tailored for enterprise AI orchestration, faces headwinds from its high valuation and limited adoption in non-defense sectors. JD.com, by contrast, is embedding AI into its logistics, healthcare, and retail operations, creating a flywheel effect that drives both efficiency and revenue.

The Risks: China's Shadow

Investors must acknowledge the geopolitical risks. JD.com operates in a market where government intervention is a wildcard. Regulatory shifts or data privacy laws could disrupt its AI initiatives. However, the company's diversified revenue streams (e-commerce, logistics, healthcare) and strong balance sheet mitigate these concerns.

The Verdict: A Strategic Buy for AI Pioneers

JD.com's 64% price target isn't just Wall Street optimism—it's rooted in fundamentals. Its low valuation, AI infrastructure, and strategic partnerships make it a stealth winner in the AI arms race. For investors willing to stomach China's risks, JD.com offers a rare mix of growth, value, and innovation that outpaces even the most hyped AI stocks.

In a market obsessed with "the next big thing," JD.com proves that sometimes the most overlooked opportunities yield the highest rewards. If you're building a diversified AI portfolio, JD.com deserves a seat at the table.