Goldman Sachs is staying bullish on Alibaba ( NYSE:BABA ) after the company unveiled its latest AI model, claiming it outperforms DeepSeek. Analyst Ronald Keung reiterated a Buy rating, predicting more than 20% upside.

Alibaba Cloud introduced Qwen2.5-VL, an open-source, multi-modal AI model that can analyze images, generate visuals, interact with devices, and process long videos. The company also launched Qwen2.5-1M, a large language model capable of handling 1 million input tokens at once. At the same time, DeepSeek released Janus-Pro, a competing AI model focused on multi-modal and visual generation.

Alibaba's cloud unit claimed Qwen 2.5-Max surpasses OpenAI's GPT-4, DeepSeek-V3, and Meta's (META) Llama-3.1-405B. With AI competition heating up, investors are closely watching how Alibaba stacks up against global rivals. It's important to note that BABA is now up more than 25% in the past six months.

This article first appeared on GuruFocus .