Cathie Wood Targets Chinese Stocks: A Look at Recent Purchases
On September 23, 2025, Cathie Wood, renowned for her investment acumen, made headlines by acquiring shares in three notable Chinese companies: Alibaba Group (NYSE: BABA), Pony AI (NASDAQ: PONY), and Baidu (NASDAQ: BIDU). This strategic move has caught the attention of investors looking to capitalize on potential growth in the ever-evolving Chinese market.
Here’s a closer inspection of the three companies that Wood has recently added to her portfolio:
1. Alibaba Group (BABA)
Alibaba, the leading e-commerce giant in China, has seen its stock surge nearly 95% this year alone. Despite its impressive growth, the company has struggled to meet Wall Street’s profit expectations in recent quarters, with revenue growth remaining in the single digits for the fourth consecutive year. However, its strong cash flow from core e-commerce platforms, Taobao and Tmall, remains robust and profitable, allowing the company to invest in new ventures and even return capital to shareholders. With shares trading at a reasonable 16 times projected earnings, Alibaba offers a compelling opportunity for growth, provided it can navigate its current challenges.
2. Pony AI (PONY)
Pony AI, which specializes in autonomous driving technology, has experienced significant stock volatility since going public at $13 per share. Recently, its shares hit a high of $23 before dropping to $4.11, but they have since rebounded, showcasing a 58% gain since its IPO. The company has made strides in commercializing robotaxi services in China and is the only firm at the World Artificial Intelligence Conference 2025 to offer fully driverless ride-hailing services. With plans to expand its fleet to 1,000 vehicles and an impressive revenue growth of 76% in the latest quarter, Pony AI remains an intriguing investment, albeit with its market cap exceeding $7.3 billion, necessitating continued growth to justify its valuation.
3. Baidu (BIDU)
Baidu, often referred to as the Google of China, has had a rocky journey, but recent trends indicate a turnaround. Over the past three months, Baidu’s stock has skyrocketed by over 60%. While experiencing revenue declines in two of the last three years, the company is now pivoting towards its AI chips business, a move that aligns with the increasing demand for domestically produced technology. Trading at just 12 times its trailing earnings, Baidu appears to be well-positioned for a potential revenue recovery in the coming year, making it an attractive option for investors seeking value in the tech sector.
In summary, Cathie Wood’s recent purchases reflect a calculated bet on the recovery and growth potential of Chinese tech stocks. With Alibaba’s established market presence, Pony AI’s innovative drive in autonomous technology, and Baidu’s renewed focus on AI, these companies stand at the forefront of a rapidly changing market landscape.
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