Alibaba Group shares jumped 5.2% on Thursday after Arete Research raised its rating from Neutral to Buy and set a $190 price target. During mid-day trading, the stock climbed to a high of $181.10 before settling at $177.46, compared with the prior close of $168.67. Trading volume surged to 31.64 million shares, an 81% increase over the 17.48 million average, underlining strong investor interest following the upgrade.

According to multiple reports, Alibaba is planning to spin off its T-Head semiconductor unit into a separate entity, paving the way for an IPO that could capitalize on frothy valuations in China’s chip sector. The restructuring would include partial employee ownership and aims to tap demand for AI-optimized processors. Market observers estimate the standalone chipmaker could command a valuation of $20–30 billion, potentially unlocking significant shareholder value.

Beyond Arete, 18 analysts maintain Buy ratings on BABA, one has a Hold and one a Sell, per MarketBeat data. Robert W. Baird raised its target from $153 to $174 on September 24, while Sanford C. Bernstein trimmed its objective from $200 to $190 on November 26. Jefferies lowered its target from $231 to $225 on January 8, and Benchmark reaffirmed a $195 target on November 25. The consensus price target stands at $192.72, suggesting roughly 8.6% upside from current levels.

Alibaba’s market capitalization is approximately $423.7 billion, with a P/E ratio of 24.51, PEG of 3.63 and beta of 0.37. The company’s debt-to-equity ratio is a conservative 0.23, while both its current and quick ratios sit at 1.46, reflecting ample liquidity. Institutional investors hold 13.47% of the float, with recent filings showing Verde Servicos increased its stake by 6.9% to 67,773 shares, and NTV Asset Management boosted its position by 127.4% to 15,143 shares over the past two quarters.