Alibaba - tumbles toward 52-week low on chip access fears
⚠ $BABA-W(09988)$ is this week's standout underperformer with a 10.6% week-to-date loss following yesterday's 6.8% plunge to HKD 93.80
🚫The stock slump is driven by fears of tighter US semiconductor export controls that could directly impair Alibaba's AI cloud buildout after it was revealed that Megaspeed - the company embroiled in the Nvidia spy scandal - rents out Nvidia chips to Alibaba
🗓Adding to the headwinds is pre-earnings anxiety ahead of Alibaba's scheduled reporting next Thursday night on 19 Nov
In other news, Bloomberg reported that Alibaba's chip design unit T-Head has filed for a Hong Kong IPO, reportedly targeting USD 2–3 billion at time where the HK IPO market is cooling
At yesterday's closing price of HKD 93.80, Alibaba is currently trading well below its 50-day, 100-day and 200-day moving averages
Investors will be watching the key 52-week low of HKD 88.65 that was last traded in Jun 2026 to see if that could act as a critical support for Alibaba shares
Bloomberg believes that a AI cloud revenue beat in its earnings next week could potentially trigger a sharp rally
Investors keen to trade a rebound of Alibaba shares can consider obtaining leveraged exposure via trending Alibaba call warrant $Alibaba MB eCW270302(QVYW.SI)$ (https://warrants.com.sg/tools/livematrix/QVYW) which is down 48.8% to SGD 0.021 this week following Alibaba's 10.6% decline
Prefer to trade the bearish formation in Alibaba shares? You can consider using put warrants which will increase in price should the underlying share price fall. Trending Alibaba put warrant $Alibaba MB ePW270202(5B6W.SI)$ (https://warrants.com.sg/tools/livematrix/5B6W) for example, has increased 66.7% this week to SGD 0.050 following Alibaba's 10.6% fall
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