I lean toward holding, but cautiously. Here’s why: • The AI/cloud bet is real and large. Alibaba is placing a lot of chips on this being its next engine. • The Citi upgrade demonstrates institutional confidence, not just speculative hype. • While valuation is stretched in some views, some models and analyst views still see upside. Nevertheless, • I wouldn’t hold with blind faith. • Set clear stop-loss levels or trailing exits in case sentiment shifts. • i will consider lightening my position as it approaches Citi’s target or other resistance zones (e.g. around $200+).
This shift could boost Alibaba Cloud revenue, improve efficiency across e-commerce and logistics, and strengthen its competitive edge against rivals like Tencent, JD, and Baidu. If executed well, the transformation could open new growth lines, enhance margins, and align Alibaba with China’s national push for AI leadership. However, risks include high upfront costs, intense competition, regulatory pressures, and reliance on restricted chip supply. For investors, it presents a high-risk, high-reward opportunity with potential long-term upside but near-term volatility.
Great and positive news indeed! This is a significant strategic shift for both companies, but especially for Intel. It gives Intel a much needed boost in capital and credibility, and puts it back into conversations about AI infrastructure. For Nvidia, it’s more about strategy and long-term positioning, rather than immediate revenue boost (though there may also be financial upside from the equity stake and from products that result). If the execution goes well, investors could benefit substantially. But there are execution risks, and much depends on how quickly and well the joint products come to market, how Intel handles manufacturing/packaging challenges, and how competition and regulation respond.
Nvidia is not “cheap” in absolute terms, it is still reasonably valued given its unmatched growth, market dominance, and massive cash generation. Compare to other Tech Giants such as Apple, Microsoft, and Amazon, that have lower growth rates but trade at similar or higher P/Es, Nvidia is considered still “cheap” relative to its growth prospects.