TCEHY - Alibaba Flagged That US Chip Curbs Clouded Its Cloud Computing Prospects | Benzinga
Alibaba Group Holding Limited (NYSE: BABA) shares tumbled almost 10% in Hong Kong today after its announcement that it will not proceed with the spinoff of its cloud group that competes with Amazon.com Inc (NASDAQ: AMZN) Amazon Web Services as well as with Microsoft Corporation (NASDAQ: MSFT) Microsoft Azure.
The Cloud Intelligence Group Will Not Be Publicly Listed Due To U.S. Chip Export Restrictions
Alibaba revealed it will not be listing its cloud computing segment that is the infrastructure of the digital economy due to U.S. chip curbs. The U.S. made it harder for Chinese companies to get their chip supplies from U.S. companies by restricting exports, harming Nvidia Corporation (NASDAQ: NVDA) and its advanced AI-focused hips, H800 and A800 and creating uncertainties also for prospects of Alibaba’s cloud arm due to which the Chinese titan decided to shelve its spinoff plan.
Quarterly Highlights
For the quarter that ended on September 30th, Alibaba reported revenue rose 9% YoY to 224.79 billion yuan (31.47 billion) which met expectations with net income attributable to shareholders ...