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Alibaba Stock Up 1% Today, Company Unveils New Chip for Its Cloud Computing Sector

UTC by Steve Muchoki · 3 min read
Alibaba Stock Up 1% Today, Company Unveils New Chip for Its Cloud Computing Sector
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Alibaba stock has dropped approximately 44.96%, 29.15%, and 18.74% in the past year, YTD and three months respectively.

Alibaba Group Holdings Ltd (HKG: 9988) stock traded around HK $ 164.80, up 1.17% as of October 19, 2021, 4:08 p.m HKST. With the Hong Kong market closed by then, Alibaba shares ranged between 162.20 and 165.90 during the day. On Tuesday, Alibaba Cloud unveiled a new server chip dubbed Yitian 710, which will go into new servers called Panjim.

Notably, the server chips will be custom-made by Alibaba Group’s chip development business, T-Head.

Alibaba Cloud

With the increased global shortage of semiconductor chips and heightened prices, the company saw it vital to start its inbuilt server chips.

“Customizing our server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better performance and improved energy efficiency,” said Jeff Zhang, President of Alibaba Cloud Intelligence “We plan to use the chips to support current and future businesses across the Alibaba Group ecosystem. We will also offer our clients next-generation computing services powered by the new chip-powered servers in the near future.”

The company has followed similar footsteps made by other global companies including Google LLC to manufacture their in-house chips. Mind you, an in-house-built semiconductor chip will guarantee seamless compatibility with the company’s unique software products.

Notably, the company has partnered with global tech companies to enhance innovation, particularly semiconductor chips.

“Together with our global partners including Intel, Nvidia, AMD, and Arm, we will continue to innovate our compute infrastructure and offer diverse computing services for our global customers,” Zhang added.

In a bid to enhance ultimate performance and energy efficiency, the company has designed the new server chips to be powered by 128 Arm cores with 3.2GHz top clock speed.

Alibaba Stock on Hong Kong Exchange

According to market analytics provided by MarketWatch, Alibaba stock has dropped approximately 44.96%, 29.15%, and 18.74% in the past year, YTD and three months respectively. However, the company’s stock market has risen approximately 10.8%, and 2.17% in the past one month and five days respectively through Monday.

Having been rated 53 times in the recent past, Alibaba stock received an average rating of Buy. One thing remains common from all the analysts’ ratings, the company is well-positioned to rise further in the coming quarters.

The company anticipates a global era of chip-making through its new server chip. “By opening up the IP cores of our in-house IoT processors as well as related software stacks and development tools, we aim to assist global developers to build their RISC-V-based chips in a much more cost-effective way,” Zhang added.

Business News, Cloud Computing, Market News, News, Stocks
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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