Alibaba's Latest Chip Won't Help Overall Revenue Much -- Market Talk

Dow Jones03-24 16:27

0827 GMT - Alibaba Group's latest chip is unlikely to have a major impact on the company's overall revenue, Morningstar's Chelsey Tam says in a commentary. The launch of XuanTie C950 is a positive development for China's efforts to achieve self-reliance in advanced technology, Tam says. The chip could also improve supply-chain resilience amid scarce computing power and lower overall costs. But Tam notes that Alibaba's T-Head chip business generated revenue of more than 10 billion yuan in 2025, a fraction of the company's total revenue last year. Capacity constraints also make it hard for the company to increase chip production drastically, she adds. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

March 24, 2026 04:27 ET (08:27 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment