Alibaba (BABA) Prepares IPO for T-Head Chip Unit with Employee Ownership Restructuring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- IPO Preparation: Alibaba is preparing for an IPO of its chipmaking unit T-Head, planning to restructure it as a business partly owned by employees, although the timing remains unclear, indicating the company's commitment to the chip design sector.
- Strategic Focus Shift: Alibaba has long explored chip design to secure vital components for its data centers and cloud services, particularly in AI chips, aiming to become a leading AI company and enhance its market competitiveness.
- Collaborative Opportunity: T-Head signed a contract with China's second-largest wireless carrier to deploy its Pingtouge AI accelerators in the operator's new data center, marking progress in the market while competing with products from MetaX and Biren Technology.
- Market Potential Exploration: While T-Head's valuation remains uncertain, Alibaba's exploration and progress in the chip sector may lay the groundwork for a future IPO, reflecting the company's long-term strategic positioning in AI and cloud computing.
Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BABA is 203.66 USD with a low forecast of 172.00 USD and a high forecast of 230.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 162.390
Low
172.00
Averages
203.66
High
230.00
Current: 162.390
Low
172.00
Averages
203.66
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
