China’s stock market is drawing fresh attention, with the Shanghai Composite Index up about 25% since April and trading near 3,870, its highest level in a decade. The rally is being fueled by strong inflows from institutional investors and record household savings moving into equities, even as the broader economy remains under pressure. Amid this scenario, we used TipRanks’ Stock Comparison Tool to compare these two Chinese stocks, Alibaba (BABA) and Nio (NIO), to find the better pick ahead of the upcoming earnings results, according to Wall Street analysts.
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Nio (NYSE:NIO) Stock
Shares of EV maker Nio are up 54% year-to-date and have climbed 34% in August alone. The rally has been fueled by new product launches and aggressive pricing moves. Nio recently rolled out its all-new ES8 SUV, a three-row model now open for pre-orders in China, while also cutting prices across its long-range lineup to better compete with Tesla’s (TSLA) latest six-seat Model Y L SUV.
Investor enthusiasm around Nio’s new mass-market Onvo brand, particularly the L90 SUV, has further boosted momentum. Looking ahead, Nio is set to report its Q2 2025 earnings on September 2. Wall Street expects Nio to report a loss per share of $0.31on revenues of $2.73 billion.
Is NIO Stock a Buy, Sell, or Hold?
Ahead of the results, JPMorgan analyst Nick Lai has upgraded the rating to Buy from Hold and also lifted the price target to $8 (19% upside potential), up from $4.80.
The analyst sees Nio benefiting from a wider product lineup and better consumer sentiment. He forecasts deliveries to rise 50% in 2025 and 47% in 2026, with profits likely to improve in the second half of 2026 if margins improve. He also placed NIO stock on a “positive catalyst watch,” pointing to the upcoming Q2 earnings report, Nio Day in late September, and the Guangzhou Auto Show in November as key events that could lift the stock.
Overall, Wall Street has a Moderate Buy consensus rating on NIO stock based on four Buys, five Holds, and one Sell assigned in the last three months. The average NIO stock price target of $5.01 implies 25.22% downside potential from current levels.
Alibaba (NYSE:BABA) Stock
Alibaba, China’s largest e-commerce and cloud-services company, runs platforms like Taobao, Tmall, and AliCloud. Shares have gained 49% year-to-date, supported by strong growth in AI-powered cloud services and rising demand for instant delivery. The company has been doubling down on artificial intelligence, aiming to use it to transform both online shopping and cloud offerings.
Still, analysts note that Alibaba’s AI investments have yet to deliver a clear revenue payoff, echoing trends seen at peers Tencent (TCEHY) and Baidu (BIDU). So far, Alibaba’s AI-driven growth has been limited by heavy price cuts in cloud services, which have squeezed margins.
Looking ahead, the company is set to report its Q1 FY26 earnings on Friday, August 29. Wall Street analysts expect Alibaba to report earnings of $1.98 per share for Q1, down 14% from the year-ago quarter. Meanwhile, analysts project Q1 revenues at $35.24 billion, according to the TipRanks Analyst Forecasts Page. The figure marks a year-over-year increase of about 5%.
Is Alibaba Stock a Good Buy Right Now?
Ahead of the Q1 results, Mizuho’s Top analyst, Wei Fang, maintained an Outperform rating on Alibaba but trimmed his price target to $149 from $160. Fang noted that consumer demand held up well in the June quarter, supported by promotional campaigns and smartphone trade-in offers. That said, he flagged growing pressure on margins as competition heats up in China’s local commerce market, particularly in food delivery and instant retail.
Overall, Wall Street has a Strong Buy consensus rating on Alibaba stock based on 11 Buys and one Hold rating. The average Alibaba price target of $149.35 implies about 20.26% upside potential from current levels.
Conclusion
Ahead of earnings, Wall Street sees more upside in Alibaba than in Nio, with analysts pointing to its solid e-commerce base and growing AI initiatives. Still, Nio remains in focus thanks to its product launches, new Onvo brand, and upcoming catalysts that could shift sentiment if execution improves.
For now, consensus favors Alibaba as the stronger pick, but both stocks will be in the spotlight as investors gauge China’s market momentum in the weeks ahead.