BABA Alibaba Group Holding Limited

bullish 1/2 calls correct ↓ $125.46 +3.48 (+2.9%)
Mkt Cap $293B P/E 21.9 fwd 15.9 52wk $95.73 - $192.67 Earnings missing
15 signals · latest 23h ago | updated 1d ago
Bullish n=61
Est. revisions: -8.0% (3 up, 8 down in 30d)

Alibaba bets on homegrown chips as Huawei fills Nvidia void

adequate signal density n=61
Factors: -0.49 est. revisions -0.86 momentum -0.72 analyst

Watch: Q4 Cloud contribution margin trajectory and whether 30%+ Cloud growth sustains despite capex; if it does, the stock (down 35% from highs) has room to recover as the $100B revenue thesis becomes credible.

Full analysis

Q3 revenue grew just 2%, missing estimates, but AI and cloud segments accelerated 36% and 35% respectively. Alibaba secured orders from Huawei's new 950PR AI chip—itself gaining traction from ByteDance and Alibaba—signaling a broader Chinese pivot away from Nvidia-dependent architectures. The company unveiled its own custom chip for agentic AI and reaffirmed a $100 billion five-year AI and cloud revenue target, pricing AI services up 34%. Supply chain diversification is shielding Alibaba from US export restrictions while reinforcing its cloud-to-semiconductor vertical integration play.

Alibaba is morphing from a pure cloud player into a semiconductor-enabled infrastructure vendor, reducing Nvidia dependency while capturing value across the AI stack—but near-term margins remain under pressure from capex and the broader ecommerce slowdown (consumption revenue +6%) creates a wedge between AI hype and core business reality.

Position history (2d) bull bear neutral
2026-03-05 2026-03-20

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Why We're Bullish

net -2.9
Estimate Revisions
-0.5
estimates -8.0% in 30d
Insider Activity
+0.0
net neutral
Price Momentum
-0.9
-15.4% 30d return
Analyst Revisions
-0.7
downgrades > upgrades
Narrative Gap
-0.5
news more bearish than data

Direction History

1/2 correct at 5 days
2026-03-20 bearish +0.2%
2026-03-09 bullish +3.1%

Compare

Alibaba Group Holding Limited Consumer Cyclical · Internet Retail
Mkt Cap
$293B
P/E
21.9 fwd 15.9
Beta
0.43
Div Yield
86.00%
52w Range
$95.73 - $192.67
Short Interest
41.1M 2.05%
Days to Cover
4.2 +5%
Technicals downtrend
vs 20d MA
-6.6%
vs 50d MA
-18.2%
from 52w Hi
-35.6%
Vol (20d)
41%
1w return
-3.2%
1m return
-15.4%
3m return
-19.9%
Vol ratio
0.7x
Analysts
mixed
Earnings
missing 1B / 4M
EPS Estimate
$8.12 -8.0% 30d 3up / 8dn
Est. Dispersion
78% 14 analysts
Analyst Target
$189 $112 - $258
Options P/C
0.25 2C / 0P unusual
Fund Convergence
strong Citadel, Appaloosa, D.E. Shaw
Financials
Revenue
$284.8B +2% YoY
FCF
$36.0B
Gross Margin
40%
Op Margin
7%
Momentum: accelerating
Top Holders
Citadel $2.7B
Appaloosa $753M
D.E. Shaw $158M
Recent Filings & Data
earnings 5
EPS 21.39 (est 19.37573) · +0.1%
EPS 12.52 (est 12.81454) · -0.0%
EPS 14.75 (est 15.47094) · -0.0%
EPS 4.36 (est 5.77853) · -0.2%
EPS 7.09 (est 10.93826) · -0.4%

Evidence

Get alerted when BABA changes direction.