Alibaba Considers Spinoff of T-Head Chip Unit to Capture High Valuations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Source: Benzinga
- Spinoff Plan: Alibaba is reportedly considering a spinoff and separate listing for its T-Head chip-making unit, aiming to leverage the high valuations of Chinese AI chipmakers to enhance shareholder value, with expectations for completion in the next three to four months.
- Market Reaction: Following the Bloomberg report, Alibaba's New York-listed stock surged 5%, having more than doubled in the past 52 weeks to a market cap of $423 billion, narrowing the gap with Tencent, indicating positive market sentiment towards the spinoff plan.
- Revenue Growth: Alibaba's latest earnings report revealed a 5% year-over-year revenue increase to 248 billion yuan ($35.6 billion) for the quarter ending in September, with its cloud division showing a strong 34% revenue growth, reaching approximately 40 billion yuan, further solidifying its market position.
- Industry Trend: The spinoff plans for Alibaba's T-Head and Baidu's Kunlunxin reflect the heightened market interest in AI chip technology, driven by surging demand in China, potentially attracting more investment to support their ongoing development.
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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: 95.070
Low
180.00
Averages
203.09
High
230.00
Current: 95.070
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 four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health 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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