What's Going On With Alibaba Stock Monday?

Alibaba Group Holding Limited BABA stock is trading lower Monday amid reports of its intentions to reduce its orders of Nvidia Corp's NVDA chips compared to its original plans when Nvidia offered its now-restricted products. 

The reluctance from companies including Alibaba and Tencent Holding Ltd TCEHY originated from a budding interest in local options and in-house developments, the Wall Street Journal reports.

Major Chinese firms, including AI pioneer Baidu Inc BIDU and ByteDance, also shifted focus to domestic chip producers like Huawei Technologies.

Nvidia sold over $1 billion of modified chips to Chinese customers in 2023.

Also Read: Nvidia Navigates US Tech Restrictions, Eyes Growth in China and India Markets Amidst Global Shifts

Chinese cloud companies, currently sourcing about 80% of high-end AI chips from Nvidia, may reduce this to 50%-60% within five years.

Meanwhile, Alibaba.com, a subsidiary of Alibaba, marked its presence at this year's CES in Las Vegas, showcasing its advancements in machine learning for e-commerce. 

The event witnessed a significant increase in Chinese exhibitors, more than double from last year, with over 1,115 companies registered, SCMP reports.

This resurgence reflects Chinese firms' eagerness to expand globally post-Covid. Big names like ByteDance and Alibaba noted through their international offices, highlighting their commitment to the global market. 

The CES, attracting about 4,000 exhibitors and anticipating 130,000 attendees, underscores Chinese technology firms' growing global influence. 

Artificial intelligence, particularly in e-commerce and smart home technologies, emerged as a key trend at the show, with Alibaba at the forefront of integrating AI into its e-commerce platforms.

Alibaba lost over 34% in stock value last year.

Price Action: BABA shares traded lower by 2.44% at $71.24 premarket on the last check Monday.

Also Read: Nvidia Boosts Market Presence with Upcoming Super GPU Lineup, Eyes on AI Chip Production for China and India

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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