Alibaba Unveils New AI Chip Zhenwu M890 Amid U.S. Export Curbs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23 minutes ago
0mins
Should l Buy NVDA?
Source: Newsfilter
- Chip Performance Boost: Alibaba's newly launched AI chip, Zhenwu M890, delivers three times the performance of its predecessor, Zhenwu 810E, and is specifically designed to handle complex AI 'agent' tasks, thereby enhancing the company's competitive edge in the AI sector.
- Long-Term Development Plan: Alibaba has outlined a multi-year chip roadmap, planning to release the V900 chip in Q3 2027, which is expected to triple the performance again, demonstrating the company's commitment to ongoing investment and technological upgrades in in-house chip development.
- Market Demand Response: Last year, Alibaba pledged over 380 billion yuan ($53 billion) for cloud and AI infrastructure, reflecting the company's confidence in the surging demand for AI computing power and aiming to capitalize on market opportunities arising from enterprises adopting agent-based applications.
- Customer Base Expansion: To date, T-Head has shipped over 560,000 Zhenwu chips to more than 400 external customers across 20 industries, including automotive and financial services, showcasing Alibaba's extensive application and influence in the AI chip market.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 222.320
Low
200.00
Averages
264.97
High
352.00
Current: 222.320
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
Nvidia Shares Dip Ahead of Q1 Earnings Report
- Strong Earnings Expectations: Analysts anticipate Nvidia's Q1 revenue to rise 80% year-over-year to $79.23 billion, with adjusted earnings per share expected to increase by 120% to $1.78, reflecting the company's robust performance in the AI sector.
- New Product Launch: Nvidia has delivered its latest-generation Vera CPU, specifically designed for AI data centers and replacing the Grace CPU, aiming to optimize data handling for large AI workloads through high-bandwidth NVLink connections with Nvidia GPUs.
- Optimistic Market Sentiment: A Stocktwits poll shows that approximately 85% of 4,500 users expect Nvidia to exceed both revenue and profit estimates, although investor views on stock performance post-earnings are mixed, particularly since shares have declined after the last three quarterly reports despite strong results.
- Stock Price Volatility Trend: Nvidia shares have dipped slightly in the last two trading sessions, yet are up nearly 20% year-to-date, with the market eagerly awaiting the upcoming earnings report, which could significantly influence tech stocks and the broader AI trading landscape.
See More
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- Leading SPDR ETF: The State Street SPDR S&P Semiconductor ETF has outperformed larger peers with a 30% year-to-date gain, despite having only a 2% weight in Nvidia, showcasing the effectiveness of its diversified investment strategy.
- Balanced Allocation Advantage: This ETF tracks the S&P Semiconductor Select Industry Index with an equal-weight approach, emphasizing smaller stocks, and has an average market cap of $270.7 billion, significantly lower than the $1.4 trillion average of the largest semiconductor ETF.
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Nvidia Earnings Could Trigger $350 Billion Market Swing
- Earnings Anticipation: Nvidia's upcoming Q1 earnings report is expected to trigger a market swing of up to $350 billion, with analysts optimistic about its performance amid the global AI frenzy, yet the key question remains whether it can maintain its dominant position.
- Intensifying Competition: With traditional rivals like Intel, AMD, and Google-parent Alphabet emerging in the inference chip space, Nvidia faces increasing competition that could impact its future market share and profitability.
- Market Environment: The current market is under pressure from inflation concerns, with global equities declining, particularly as the Iran conflict drives up oil prices, exacerbating fears of rising global interest rates and pushing bond yields to multi-year highs.
- Policy Dynamics: Bank of England Governor Andrew Bailey will address the Treasury Committee regarding last month's rate cut decision and the impact of the Iran war, while the U.S. Federal Reserve is set to release minutes from its April meeting, with markets keenly watching for guidance on future monetary policy.
See More
Alibaba Unveils New AI Chip Zhenwu M890 Amid U.S. Export Curbs
- Chip Performance Boost: Alibaba's newly launched AI chip, Zhenwu M890, delivers three times the performance of its predecessor, Zhenwu 810E, and is specifically designed to handle complex AI 'agent' tasks, thereby enhancing the company's competitive edge in the AI sector.
- Long-Term Development Plan: Alibaba has outlined a multi-year chip roadmap, planning to release the V900 chip in Q3 2027, which is expected to triple the performance again, demonstrating the company's commitment to ongoing investment and technological upgrades in in-house chip development.
- Market Demand Response: Last year, Alibaba pledged over 380 billion yuan ($53 billion) for cloud and AI infrastructure, reflecting the company's confidence in the surging demand for AI computing power and aiming to capitalize on market opportunities arising from enterprises adopting agent-based applications.
- Customer Base Expansion: To date, T-Head has shipped over 560,000 Zhenwu chips to more than 400 external customers across 20 industries, including automotive and financial services, showcasing Alibaba's extensive application and influence in the AI chip market.
See More
Micron Technology Price Target Raised to $1,100
- Price Target Increase: Melius Research raised Micron Technology's price target from $700 to $1,100 while maintaining a 'Buy' rating, indicating an upside potential of over 57%, reflecting market optimism regarding AI server demand.
- Analyst Optimism: Mizuho increased Micron's price target from $740 to $800, maintaining an 'Outperform' rating, and expects tight supply in NAND and DRAM to persist into the first half of 2027, further boosting Micron's market performance.
- Nvidia Earnings Impact: Nvidia is set to report its Q1 results on Wednesday, with analysts predicting an 80% increase in quarterly revenue to $79.12 billion, which is expected to significantly impact memory chip stocks, particularly as Micron is a key partner for Nvidia.
- Samsung Workers Strike: Over 47,000 Samsung Electronics workers in South Korea are set to strike starting Thursday, posing potential disruptions to the AI hardware supply chain, although some investors remain optimistic that Micron's performance will not be significantly affected.
See More
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- Earnings Release Date: Nvidia is set to release its Q1 fiscal 2027 earnings report on May 20 after market close, drawing significant investor attention due to its pivotal role in the rapidly growing AI market.
- Market Performance: Over the past 12 months, Nvidia's stock has surged more than 60% and is hovering near its all-time high, reflecting strong market demand and investor confidence in its growth trajectory.
- Performance Expectations: Analysts anticipate Nvidia's revenue and EPS to grow by 73% and 67%, respectively, indicating robust growth potential in the AI sector, while the stock is still considered relatively cheap at 27 times this year's earnings.
- Investment Strategy: Despite the stock declining in three of the four quarters following earnings releases over the past year, long-term holders of Nvidia may benefit from ongoing AI capital expenditures, suggesting that short-term fluctuations should not deter long-term investment decisions.
See More
Nvidia Shares Dip Ahead of Q1 Earnings Report
- Strong Earnings Expectations: Analysts anticipate Nvidia's Q1 revenue to rise 80% year-over-year to $79.23 billion, with adjusted earnings per share expected to increase by 120% to $1.78, reflecting the company's robust performance in the AI sector.
- New Product Launch: Nvidia has delivered its latest-generation Vera CPU, specifically designed for AI data centers and replacing the Grace CPU, aiming to optimize data handling for large AI workloads through high-bandwidth NVLink connections with Nvidia GPUs.
- Optimistic Market Sentiment: A Stocktwits poll shows that approximately 85% of 4,500 users expect Nvidia to exceed both revenue and profit estimates, although investor views on stock performance post-earnings are mixed, particularly since shares have declined after the last three quarterly reports despite strong results.
- Stock Price Volatility Trend: Nvidia shares have dipped slightly in the last two trading sessions, yet are up nearly 20% year-to-date, with the market eagerly awaiting the upcoming earnings report, which could significantly influence tech stocks and the broader AI trading landscape.
See More
Semiconductor ETFs Show Scorching Performance
- Strong ETF Performance: As of 2026, among over 5,200 exchange-traded products, only 120 have risen by more than 50% year-to-date, with 10 being standard semiconductor ETFs, indicating robust sector performance.
- Leading SPDR ETF: The State Street SPDR S&P Semiconductor ETF has outperformed larger peers with a 30% year-to-date gain, despite having only a 2% weight in Nvidia, showcasing the effectiveness of its diversified investment strategy.
- Balanced Allocation Advantage: This ETF tracks the S&P Semiconductor Select Industry Index with an equal-weight approach, emphasizing smaller stocks, and has an average market cap of $270.7 billion, significantly lower than the $1.4 trillion average of the largest semiconductor ETF.
- Reasonable Fees: The SPDR S&P Semiconductor ETF charges an annual fee of 0.35%, or $35 on a $10,000 investment, providing a relatively low-cost option that appeals to investors seeking diversified exposure.
See More
Nvidia Earnings Could Trigger $350 Billion Market Swing
- Earnings Anticipation: Nvidia's upcoming Q1 earnings report is expected to trigger a market swing of up to $350 billion, with analysts optimistic about its performance amid the global AI frenzy, yet the key question remains whether it can maintain its dominant position.
- Intensifying Competition: With traditional rivals like Intel, AMD, and Google-parent Alphabet emerging in the inference chip space, Nvidia faces increasing competition that could impact its future market share and profitability.
- Market Environment: The current market is under pressure from inflation concerns, with global equities declining, particularly as the Iran conflict drives up oil prices, exacerbating fears of rising global interest rates and pushing bond yields to multi-year highs.
- Policy Dynamics: Bank of England Governor Andrew Bailey will address the Treasury Committee regarding last month's rate cut decision and the impact of the Iran war, while the U.S. Federal Reserve is set to release minutes from its April meeting, with markets keenly watching for guidance on future monetary policy.
See More
Alibaba Unveils New AI Chip Zhenwu M890 Amid U.S. Export Curbs
- Chip Performance Boost: Alibaba's newly launched AI chip, Zhenwu M890, delivers three times the performance of its predecessor, Zhenwu 810E, and is specifically designed to handle complex AI 'agent' tasks, thereby enhancing the company's competitive edge in the AI sector.
- Long-Term Development Plan: Alibaba has outlined a multi-year chip roadmap, planning to release the V900 chip in Q3 2027, which is expected to triple the performance again, demonstrating the company's commitment to ongoing investment and technological upgrades in in-house chip development.
- Market Demand Response: Last year, Alibaba pledged over 380 billion yuan ($53 billion) for cloud and AI infrastructure, reflecting the company's confidence in the surging demand for AI computing power and aiming to capitalize on market opportunities arising from enterprises adopting agent-based applications.
- Customer Base Expansion: To date, T-Head has shipped over 560,000 Zhenwu chips to more than 400 external customers across 20 industries, including automotive and financial services, showcasing Alibaba's extensive application and influence in the AI chip market.
See More
Micron Technology Price Target Raised to $1,100
- Price Target Increase: Melius Research raised Micron Technology's price target from $700 to $1,100 while maintaining a 'Buy' rating, indicating an upside potential of over 57%, reflecting market optimism regarding AI server demand.
- Analyst Optimism: Mizuho increased Micron's price target from $740 to $800, maintaining an 'Outperform' rating, and expects tight supply in NAND and DRAM to persist into the first half of 2027, further boosting Micron's market performance.
- Nvidia Earnings Impact: Nvidia is set to report its Q1 results on Wednesday, with analysts predicting an 80% increase in quarterly revenue to $79.12 billion, which is expected to significantly impact memory chip stocks, particularly as Micron is a key partner for Nvidia.
- Samsung Workers Strike: Over 47,000 Samsung Electronics workers in South Korea are set to strike starting Thursday, posing potential disruptions to the AI hardware supply chain, although some investors remain optimistic that Micron's performance will not be significantly affected.
See More
Nvidia Earnings Preview: Investor Focus Ahead
- Earnings Release Date: Nvidia is set to release its Q1 fiscal 2027 earnings report on May 20 after market close, drawing significant investor attention due to its pivotal role in the rapidly growing AI market.
- Market Performance: Over the past 12 months, Nvidia's stock has surged more than 60% and is hovering near its all-time high, reflecting strong market demand and investor confidence in its growth trajectory.
- Performance Expectations: Analysts anticipate Nvidia's revenue and EPS to grow by 73% and 67%, respectively, indicating robust growth potential in the AI sector, while the stock is still considered relatively cheap at 27 times this year's earnings.
- Investment Strategy: Despite the stock declining in three of the four quarters following earnings releases over the past year, long-term holders of Nvidia may benefit from ongoing AI capital expenditures, suggesting that short-term fluctuations should not deter long-term investment decisions.
See More
