What's Going On With Alibaba Stock Friday?
Portfolio Pulse from Anusuya Lahiri
Alibaba Group Holding Limited (NYSE:BABA) reported a 14% YoY revenue growth to $32.29 billion in Q1 FY23, beating the consensus of $31.20 billion. However, the company faces challenges due to the U.S.'s embargo on artificial intelligence technology. Alibaba's net profit jumped over 50%, but the company acknowledged the inability to fulfill the demand for AI training from clients due to a crisis of critical components like AI chips fueled by U.S. sanctions. Chinese internet giants, including Baidu, Inc (NASDAQ: BIDU), ByteDance Ltd, Tencent Holding Ltd (OTC: TCEHY), and Alibaba, have placed orders totaling $1 billion for close to 100,000 A800 processors from Nvidia Corp's (NASDAQ:NVDA) for delivery in 2023.
August 11, 2023 | 1:11 pm
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NEUTRAL IMPACT
Alibaba reported strong Q1 FY23 results but faces challenges due to U.S. sanctions on AI technology.
While Alibaba's Q1 FY23 results were strong, the company's inability to fulfill the demand for AI training due to U.S. sanctions could impact its future performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Baidu, along with other Chinese internet giants, has placed a large order for Nvidia's A800 processors.
The large order for Nvidia's A800 processors indicates Baidu's continued investment in AI technology, which could positively impact its future performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Nvidia has received a large order for its A800 processors from Chinese internet giants, including Alibaba and Baidu.
The large order for Nvidia's A800 processors from Chinese internet giants could boost the company's future revenues.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Tencent, along with other Chinese internet giants, has placed a large order for Nvidia's A800 processors.
The large order for Nvidia's A800 processors indicates Tencent's continued investment in AI technology, which could positively impact its future performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50