Why Is Alibaba Stock Falling Thursday?
Anusuya Lahiri 13 hours ago
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Alibaba (BABA) stock falls nearly 5% premarket as U.S. scrutiny over NVIDIA AI chip access weighs on shares ahead of Nov. 19 earnings.
Alibaba Group Holding Ltd. (NYSE:BABA) stock fell nearly 5% in Thursday’s premarket trading as investors weighed tighter U.S. scrutiny of advanced NVIDIA Corp. (NASDAQ:NVDA) chips and growing uncertainty ahead of next week’s earnings.
The decline followed a broader sell-off in Chinese artificial intelligence stocks. Meanwhile, Nasdaq futures fell 0.65%, while S&P 500 futures declined 0.35%.
NVIDIA Chip Access Concerns Pressure Alibaba
Alibaba’s Hong Kong-listed shares dropped as much as 7.3% Thursday amid concerns that stricter U.S. enforcement could disrupt Chinese cloud providers’ access to advanced AI chips, Bloomberg reported.
UOB Kay Hian analyst Julia Pan told Bloomberg that Chinese cloud companies have stockpiled chips since early 2026. However, prolonged restrictions could delay AI research and development.
The concerns come amid scrutiny of NVIDIA’s chip distribution network and allegations involving Singapore-based Megaspeed International, through which Alibaba reportedly rents NVIDIA hardware.
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Alibaba Expands Its Own AI Capabilities
Despite these challenges, Alibaba continues to strengthen its domestic semiconductor capabilities.
The company is preparing a Hong Kong listing for its chip subsidiary, T-Head, although regulatory approvals remain pending.
Alibaba also introduced its Zhenwu V900 AI chip in September, with production expected to begin in early 2027.
Separately, TechNode reported Wednesday that Alibaba opened a preview of Qwen4-Max. The AI model supports image and video inputs and can process up to 1 million tokens.
Earnings and Technical Outlook
Alibaba will report quarterly earnings Nov. 19. Analysts expect earnings of $1.39 per share on revenue of $40.35 billion.
The stock remains below its 20-day, 50-day and 200-day moving averages, signaling continued technical weakness.
Its relative strength could face another test near $92, while resistance stands around $112.50.
Meanwhile, Benzinga Edge Rankings show strong value and growth scores of 93.55 and 74.22, respectively. However, weak momentum and quality scores highlight ongoing risks.
BABA Price Action
BABA Stock Price Activity: Alibaba shares were down 4.52% at $96.93 during premarket trading on Thursday, according to Benzinga Pro data.
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