Alibaba Stock Surges on AI Chip Progress and Jack Ma’s Comeback Buzz

Alibaba Group (NYSE: BABA; HKG: 9988) shares jumped 4.8% to HK$160.10 in Hong Kong on Wednesday, reaching their highest level since November 2021. The rally boosted the Hang Seng index by 1.5%, fueled by optimism over China’s artificial intelligence chip ambitions and renewed speculation around founder Jack Ma’s return.

Chinese media reported that China Unicom’s upcoming Sanjiangyuan data center signed agreements to deploy AI chips from domestic firms, including Alibaba’s chip division T-Head, Biren Technology, and Zhonghao Xinying. The move highlights Beijing’s push to reduce reliance on U.S.-made semiconductors, particularly Nvidia’s advanced AI chips, which face growing scrutiny.

Bloomberg also revealed that Jack Ma has recently become more active at Alibaba, making appearances at company campuses and sparking talk of an official comeback. Ma had kept a low profile since China’s regulatory crackdown on tech giants began in 2020. His reemergence is seen as a signal that Beijing may be easing restrictions on the sector. Currently, Alibaba is led by long-time executives Joe Tsai and Eddie Wu.

China’s top chipmakers are also testing advanced production tools to support AI processor development, potentially accelerating Alibaba’s in-house chip strategy. The China Unicom data center could serve as a crucial proving ground for T-Head’s capabilities.

While Alibaba’s cloud unit has posted stronger revenue driven by AI adoption, higher research and development costs and weak e-commerce performance remain challenges. Still, investors are watching closely to see if Alibaba and its peers can successfully pivot to domestic AI chips and regain momentum in China’s competitive tech landscape.