Invezz
20 May 2026, 05:34 UTC · 1d ago
Alibaba stock could jump 40%: new AI chip gives bulls fresh momentum
Source · https://invezz.com/news/2026/05/20/alibaba-stock-could-jump-40-new-ai-chip-gives-bulls-fresh-momentum/
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Invezz
20 May 2026, 05:34 UTC · 1d ago
Source · https://invezz.com/news/2026/05/20/alibaba-stock-could-jump-40-new-ai-chip-gives-bulls-fresh-momentum/
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Story key points
4 claims · impact-rated
Alibaba unveiled the Zhenwu M890 AI chip, which delivers three times the performance of its predecessor. — Significant hardware improvements in AI capability directly enhance the company's competitiveness in the high-growth AI sector.
+0.60Alibaba Cloud revenue rose 38% year-over-year, with AI-related product revenue posting triple-digit growth for 11 consecutive quarters. — Strong, consistent growth in the cloud and AI segments proves the commercial viability of the company's AI strategy.
+0.50Wall Street analysts see roughly 40% upside for Alibaba shares, with an average 12-month price target of $190.69. — Broad institutional optimism and high price targets typically act as a catalyst for upward price movement.
+0.40Alibaba reported an operating loss of $125 million in the March quarter, with profitability squeezed by AI infrastructure spending. — Short-term financial losses and high capital expenditures create a headwind for current earnings and margins.
-0.30Impact vectors
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Ticker attribution
Model heads
Stock plunged due to a planned strike by 47,000 workers.
Strong AI chip performance and cloud growth offset by near-term operating losses.
Reported to have snapped a losing streak and is experiencing a rebound.
Mentioned in the context of Bitcoin price crashes and slipping premium index.
No ticker relationship head found.