Alibaba Prepares Orders for 200,000 Nvidia H200 Chips, Eyes T-Head Spinout
Chinese regulators granted Alibaba in-principle approval to prepare purchases of Nvidia’s H200 AI chips, with the company privately indicating interest in over 200,000 units, potentially unlocking significant AI infrastructure capacity. Meanwhile, Alibaba is reportedly exploring an IPO spinout of its T-Head AI chipmaking arm to capture high China chip valuations.
1. Alibaba Poised to Order Over 200,000 Nvidia H200 AI Chips
Chinese regulators have granted Alibaba in-principle approval to prepare an order request for Nvidia’s H200 AI processors, unlocking a path to import advanced GPUs this quarter. Privately, Alibaba executives indicated interest in purchasing more than 200,000 units, a move that followed weeks of blocked shipments and government deliberations. Beijing’s conditional approval requires tech firms to balance imports with domestic chip procurement, though no specific quotas have been disclosed.
2. Analyst Upgrade Sparks 5.2% Surge in Trading Volume
Shares of Alibaba climbed over 5% on Thursday after Arete Research upgraded the stock to a Buy with a target of 190.00. Trading volume spiked to 31.6 million shares, 81% above the 30-day average of 17.5 million. That upgrade followed a string of mixed revisions by other firms: Robert W. Baird raised its target from 153.00 to 174.00 with an Outperform rating, while Sanford C. Bernstein trimmed its objective from 200.00 to 190.00 but maintained an Outperform stance. Overall, 18 analysts rate the company a Buy, one a Hold and one a Sell, yielding an average price target near 193.00.
3. T-Head Spinoff Plan Could Unlock Chip Unit Value
Alibaba is reportedly restructuring its T-Head semiconductor arm into a standalone unit with partial employee ownership ahead of a potential initial public offering. The proposed spinoff mirrors recent moves by other Chinese tech majors and aims to capitalize on elevated valuations in the domestic chip sector. Investors view the plan as a value-unlocking catalyst, though successful execution will hinge on regulatory approvals, corporate governance arrangements and prevailing market appetite for new listings.
4. Institutional Investors Continue to Shift Stakes
During the second and third quarters, a range of funds adjusted their exposure to Alibaba. Verde Servicos Internacional raised its holding by 6.9% to 67,773 shares, while NTV Asset Management boosted its position by 127.4% to 15,143 shares. New stakes were established by Ninety One UK at roughly 15,318,000 in market value and by Marex Group at about 17,139,000. Y Intercept Hong Kong increased its holding by 197%, adding 22,701 shares to reach 34,225. Institutional ownership now accounts for approximately 13.5% of the company’s outstanding shares.