Full Truck Alliance Co Ltd ADR (NYSE:YMM) is one of the top mid-cap stocks to own for the long term, according to hedge funds. On June 27, Citi touted Full Truck Alliance Co Ltd ADR (NYSE:YMM) as one of the beaten down Chinese internet stocks worth buying on the dip.

According to the research firm Full Truck Alliance, like other Chinese internet giants, has dropped significantly as investors pour money into artificial intelligence chipmakers. The research firm argues that the stocks are trading close to their cheapest valuations in years after a significant pullback. In contrast they continue to generate significant cash flows which affirm why they are buys on the dip.

Citi insists that the broader China internet sector is down by 24% year to date in the aftermath of investors turning their attention to artificial intelligence hardware winners. Citi insists that Full Truck Alliance Co. Ltd. holds large cash reserves and continues to buy back shares, moves expected to support the share price and boost shareholder returns.

Full Truck Alliance Co. Ltd. (NYSE:YMM) is a digital freight platform—often referred to as the "Uber for trucks"—that connects shippers with commercial truck drivers. Operating primarily in China, it matches supply and demand for road freight, optimizes routes, and provides tools to increase transportation efficiency and reduce empty hauling.

While we acknowledge the potential of YMM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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