Jim Cramer's Alibaba Call: A Missed Opportunity in the AI Surge

The investment landscape is shifting. As artificial intelligence (AI) reshapes industries, Jim Cramer's recent stock picks reveal a stark divide between legacy tech giants and the next wave of disruptors. Alibaba, once a crown jewel of the digital economy, now lags behind Cramer's AI-driven picks—stocks like monday.com, Pony AI, and an unnamed energy infrastructure firm—all of which are outperforming due to their alignment with the AI revolution. For investors, this is a critical moment to pivot toward companies at the forefront of the AI supercycle.

Alibaba's Stagnant Growth in an AI-Driven World

Alibaba's stock closed at $118.80 on May 23, 2025, a modest recovery from its May 2024 low of $66.63 but far below its 2020 peak of $312.87. While Alibaba reported a 6% revenue rise in FY2025, its core e-commerce and cloud businesses face slowing growth. Even its AI initiatives, such as the Qwen3 series, lack the hedge fund buzz seen in Cramer's top picks.

The Rise of Cramer's AI-Driven Stocks

Cramer's selections, however, are soaring. Take monday.com (NASDAQ:MNDY), which surged 28.34% since May 2024. Backed by 66 hedge funds, it's positioned as a “junior Salesforce,” leveraging AI for project management. Then there's Pony AI (NASDAQ:PONY), which grew Q1 revenue by 11.6% despite losses—a bet on autonomous driving's future. But the real opportunity lies in Cramer's lesser-known AI infrastructure play:

The Undervalued Energy Infrastructure Stock (Unnamed)

This firm, operating at 7x earnings and debt-free, is the hidden gem of the AI boom. It owns critical nuclear and LNG assets, directly addressing the energy strain caused by AI's voracious power needs. Hedge funds are quietly buying in, seeing a 100–10,000% upside over 12–24 months. Unlike Alibaba, which trades at 13x earnings, this stock represents asymmetric value in an AI-powered world.

Hedge Fund Sentiment: Where the Money Is Flowing

Hedge funds are voting with their wallets. Monday.com's 66 holders and the unnamed stock's “secret” promotion signal institutional confidence. Meanwhile, Alibaba's shareholder base faces a dilemma: its stable, dividend-paying profile ($1.05 annual dividend + a one-time $0.95 special dividend) is no match for the 373.4% returns hedge funds have generated imitating top picks since 2014.

Why the Shift Matters Now

The AI revolution isn't just about software—it's about infrastructure. Data centers, energy grids, and chips are the lifeblood of this era. Alibaba's cloud growth (18% in FY2025) pales next to the unnamed energy firm's strategic control over LNG exports and nuclear power. Even Pony AI's robotaxi bets align with AI's physical demands, while Alibaba's investments feel incremental.

The Call to Action: Pivot to AI Infrastructure

Investors should heed Cramer's warning: “Ignore fear-driven headlines and focus on quality AI plays.” Alibaba's 6% revenue growth and dividend payouts offer comfort but not growth. Contrast this with the unnamed energy stock's 7x valuation or Pony AI's 11.6% revenue jump—both signaling structural shifts in capital allocation.

The opportunity is clear:
- Sell Alibaba if you're chasing AI's next phase.
- Buy the unnamed energy infrastructure stock for its AI-linked tollbooth model.
- Hold monday.com for its enterprise AI tools.

The AI supercycle isn't a fad—it's a seismic shift. Those clinging to legacy giants risk missing the train. The time to act is now.

Final Note: The AI revolution is here. Follow the money—hedge funds are already ahead of the curve. Don't let Alibaba's stability blind you to the next wave.