Alibaba, ByteDance, and Tencent Seek Domestic Chipmakers to Mitigate Impact of Worsening Global Memory Chip Shortage - The Information
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Should l Buy BABA?
Source: moomoo
Domestic Chip Makers: Alibaba and ByteDance are returning to domestic chip manufacturers to alleviate the impact of a global shortage of memory chips.
Global Shortage: The ongoing global shortage of memory chips has prompted companies to seek local solutions to mitigate supply chain issues.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 125.480
Low
180.00
Averages
203.09
High
230.00
Current: 125.480
Low
180.00
Averages
203.09
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.
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- Strong Cloud Growth: The cloud intelligence segment achieved a 36% year-over-year revenue growth, making it Alibaba's fastest-growing major business, with AI-related workloads increasing at triple-digit rates for the tenth consecutive quarter, indicating a transformative impact on cloud economics.
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- Architectural Advantage: The CPU is based on RISC-V architecture, which rivals Arm's design, allowing customers to customize chips for specific inference patterns, achieving over 30% performance improvement and lowering overall costs.
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