Hello Community,
Today's figures from $BABA (+2,84%) show a mixed picture:
Total revenue missed expectations slightly, but the cloud division shines with 26% growth and beats forecasts. But the really important news came from the Wall Street Journal and explains the future of the company: Alibaba is developing its own advanced AI processors!
1. The context: necessity is the mother of invention
The US sanctions prohibit #NVIDIA the sale of its cutting-edge AI chips to China. For Alibaba Cloud, the heart of China's AI infrastructure, this is an existential threat. Without access to the best hardware, it is at risk of being left behind in the global AI race. Today's news is the logical and only possible response to this.
2. The strategic response: vertical integration
Alibaba is not only investing over 100 billion RMB in AI, but is now also building the crucial "shovels" itself. This move towards vertical integration is a brilliant move:
- Independence: Freeing itself from dependence on US technology and geopolitical tensions.
- New business segmentIn the long term, Alibaba could not only use these chips for its own cloud, but also sell them to other Chinese tech companies, thus opening up a new, highly profitable source of income.
- Perfect timingThe strong performance of the cloud division shows that the demand is there. Developing the right hardware now will secure future growth.
3. Impact on the market
The news briefly put pressure on NVIDIA shares today. This shows: The market understands that a potentially huge competitor is emerging here in a closed-off but gigantic market. For China, this is a decisive step on the road to technological sovereignty.
My conclusion:
The slight revenue miss is short-term noise. The strategic decision to build its own AI chip ecosystem is the real main story and a massively bullish signal for Alibaba's long-term future. Management is not just reacting, it is acting with foresight and turning the biggest weakness (dependency) into a potential new strength.
#CloudComputing
#AI
#Halbleiter
#TechWar
#China
