Alibaba Gains Access to Nvidia H200 Chips and Sees Price Targets Raised to $195
BABA•U.S. Commerce Department has cleared 10 Chinese firms, including Alibaba, to buy Nvidia’s H200 AI chips, though no shipments have occurred. Separately, two analysts raised Alibaba’s price target to $195 after reporting 38% year-over-year cloud revenue growth.
1. U.S. Approval for Nvidia H200 Purchases
The U.S. Commerce Department granted clearance to about 10 Chinese firms, including Alibaba, to purchase Nvidia’s H200 AI accelerators. No deliveries have been made yet, creating uncertainty around shipment timing and potential capacity for Alibaba’s cloud infrastructure.
2. Wall Street Raises Price Targets
Two major brokerage firms lifted their price targets for Alibaba to $195, reflecting confidence after the company reported 38% year-over-year growth in its cloud services segment. These upgrades signal bullish sentiment on Alibaba’s revenue trajectory and profitability.
3. Implications for Alibaba's Cloud and AI
Approval to access high-performance chips could enhance Alibaba’s competitiveness in AI-driven applications and data center efficiency. Combined with strong cloud growth and favorable analyst outlook, Alibaba stands to accelerate investment in generative AI offerings and expand market share.
