China Reportedly Green Lights Nvidia RTX PRO 5500 for Alibaba, ByteDance
BABA sits 19% above its 52-week low of $91.99.
Summary
China's Ministry of Industry and Information Technology has reportedly asked major domestic companies, including Alibaba and ByteDance, to disclose plans to purchase Nvidia's RTX PRO 5500 processors, with Beijing signaling it intends to approve the purchases. Industry executives expect the RTX PRO 5500 to fall outside U.S. export controls, which would give Alibaba access to high-end Nvidia chips despite ongoing restrictions. This follows Alibaba's recent launch of its own Zhenwu V900 AI chip and its record HK$80 billion share placement to fund AI infrastructure. If approved, access to Nvidia's RTX PRO 5500 would strengthen Alibaba's AI capabilities and competitive position, though the company has not yet confirmed any purchase plans. The news is also relevant to Nvidia, as it could expand its China revenue, which fell to $4.55 billion in Q1 from $9.66 billion a year earlier.
At the time of this announcement, BABA was trading at $109.74 on NYSE in the Technology sector, with a market capitalization of approximately $274.7B. The 52-week trading range was $91.99 to $192.67. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.