Alibaba Launches AI Chip, Stock Surges 89% Outperforming Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- AI Chip Launch: Alibaba officially unveiled its first AI processor chip in late August, positioning itself competitively against Nvidia's H2O processors, which marks a significant advancement in the company's AI strategy and is expected to enhance its market position.
- Stock Performance: Since the chip's announcement, Alibaba's stock has surged by 89%, significantly outperforming Nvidia's 51% increase, reflecting strong market confidence in Alibaba's AI strategy and positive investor sentiment.
- Market Opportunity: Alibaba is actively working to reduce its dependence on Nvidia technology, and with the launch of its AI chip, the company aims to seize growth opportunities in both domestic and international markets, driving long-term development.
- Future Outlook: Although Alibaba's AI chip business is still in its early stages and may take several years to achieve production scale that positively impacts profitability, the market's anticipation of its future potential could continue to drive stock price increases.
BABA
$151.2108+Infinity%1D
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 198.21 USD with a low forecast of 152.00 USD and a high forecast of 240.00 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.
21 Analyst Rating
19 Buy
2 Hold
0 Sell
Strong Buy
Current: 149.790
Low
152.00
Averages
198.21
High
240.00
Current: 149.790
Low
152.00
Averages
198.21
High
240.00
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.
