From 24/7 Wall St. · David Moadel · · 1m 30s
Alibaba Stock Rises on New AI Chip
Alibaba's Zhenwu V900 chip targets NVIDIA's China gap, stock jumps 4%.
In brief
Alibaba's Zhenwu V900 chip targets NVIDIA's China gap, stock jumps 4%. Alibaba stock rose 4% after unveiling a chip that claims three times NVIDIA's performance in China, while Baidu remained flat. Originally reported by 24/7 Wall St..
Alibaba Unveils New AI Chip
Alibaba Group shares rose 4% to $120.36 after unveiling its most powerful AI chip at Alibaba Cloud’s Hangzhou conference.
Zhenwu V900 Claims Three Times Performance
Alibaba CEO Eddie Wu said the Zhenwu V900 delivers three times the performance of earlier chips with larger memory and greater bandwidth.
Mass Production Scheduled for Q1 2027
Alibaba plans mass production and commercial release of the Zhenwu V900 chip in the first quarter of 2027.
NVIDIA Excluded from China Market
U.S. export controls have kept NVIDIA’s most advanced AI accelerators out of China, and NVIDIA excluded China data-center revenue from its Q3 FY2027 outlook.
Baidu Stock Remains Flat
Baidu stock held steady at $92.45, up 0.3%, while Alibaba’s move was seen as company-specific rather than sector-wide.
Market Reacts to Alibaba’s Move
The SPDR S&P 500 ETF Trust is essentially unchanged at $774.23, and the KraneShares CSI China Internet ETF rose 1% to $25.44.
Alibaba’s Vertical Integration Edge
Alibaba owns both the model and silicon, a position no Western supplier can contest inside China, giving it a strategic edge.
What to Watch Next
Investors will monitor whether Alibaba holds the 4% gain into the close and if independent benchmarks align with claims once V900 shipments begin in Q1 2027.
The essence
Alibaba stock rose 4% after unveiling a chip that claims three times NVIDIA's performance in China, while Baidu remained flat.
