Investors looking for companies they can invest in to benefit from the growth of AI in China have generally focused on leading tech companies like Alibaba (NYSE: BABA) and Baidu (NASDAQ: BIDU). But which of the two is a better choice?

Alibaba, Tencent and other Chinese technology stocks surged Friday, lifting Hong Kong's Hang Seng Index to a near-three-year high. Market moves pointed to a likely rally in U.S. hours, too, with the Kraneshares CSI China Internet ETF,

Shares of the Chinese tech giant Alibaba (BABA) are staging a solid comeback, rising nearly 70% in one month. The stock has outperformed its tech peers over the past year, gaining 90% during the same period.