Finding hot artificial intelligence (AI) stocks is an easy task. For example, shares of both Nvidia (NVDA 2.94%) and Palantir Technologies (PLTR +2.94%) have skyrocketed by roughly 50% in just the past three months.
But predicting which AI stocks will be huge winners in the future isn't so easy, at least not with a high degree of confidence. However, Wall Street analysts think one AI stock will soar 64% higher over the next 12 months.
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Wall Street loves this Chinese AI stock
The stock I'm referring to isn't Nvidia or Palantir, by the way. The consensus 12-month price target for Nvidia reflects an upside potential of less than 3%. Many analysts are downright pessimistic about Palantir's near-term prospects, with an average price target that's more than 30% lower than the current share price.
However, Wall Street loves JD.com (JD +6.13%). The consensus price target for this Chinese AI stock is $51.82. This number indicates that analysts, on average, believe that JD.com's share price could soar roughly 64% over the next 12 months. The most optimistic analyst surveyed by LSEG thinks that the stock could vault 123% higher during the period.
NASDAQ: JD
Key Data Points
The upbeat view about JD.com is nearly universal, too. Of the 37 analysts surveyed by LSEG in July, seven rated the stock as a "strong buy." Another 26 analysts rated it as a "buy." The four outliers recommended holding JD.com. Not a single analyst contacted by LSEG thought selling shares was a good idea.
The "Amazon of China"
Why does Wall Street think so highly of JD.com? At least part of the appeal is the company's solid business. JD.com is sometimes called the "Amazon (AMZN 2.61%) of China." Like Amazon, it runs a large e-commerce platform and major logistics operations.
Also similar to Amazon, JD.com has expanded into the healthcare arena. JD Health is one of China's largest online healthcare platforms. It provides telehealth services and healthcare products (including prescription drugs) to customers. While JD Health is traded publicly, it's still a subsidiary of JD.com.
JD.com is well positioned to benefit from the integration of AI into its online platforms and logistics operations. It should also profit more directly from AI via its 43.6% stake in JD Technology. In 2021, JD.com transferred its AI and cloud business to JD Technology.
Analysts also have to like JD.com's valuation. The stock trades at only nine times forward earnings. That's inexpensive compared to Nvidia's forward price-to-earnings ratio of 38 and dirt cheap compared to Palantir's forward earnings multiple of 263. But while those two AI stocks have surged in recent months, JD.com remains more than 30% below its 12-month high.
Should you buy this beaten-down AI stock?
Investors shouldn't buy JD.com solely because Wall Street recommends the stock. However, it's wise to consider the reasons why analysts like it. JD.com's dominance in the Chinese e-commerce market is impressive. The stock's valuation is attractive.
To be sure, JD.com isn't delivering the kind of growth that Nvidia and Palantir are. Of course, it isn't priced at the premium those two stocks are, either. But JD's year-over-year revenue growth of nearly 16% in the first quarter of 2025 isn't too shabby. The Chinese e-commerce leader is also consistently profitable and generates strong free cash flow.
Keep in mind, though, that JD.com faces some risks associated with being headquartered in China that U.S.-based companies don't have to worry about. For example, the company acknowledged in a regulatory filing to the U.S. Securities and Exchange Commission that the Chinese government "may intervene or influence our operations at any time."
I don't think JD.com is an ideal stock for risk-averse investors to buy. However, more aggressive investors might like this beaten-down AI stock that's a Wall Street favorite.
