<div id="readability-page-1"><p>Alibaba (BABA) is moving closer to a potential public listing of its AI chip unit, T-Head, according to a <em>Bloomberg</em> report, as investor interest grows in AI chipmakers amid limits on Nvidia's (NVDA) products in China. Following the report, Alibaba's U.S.-listed shares rose about 5% in pre-market trading.</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p><em>Bloomberg</em> said Alibaba plans to restructure T-Head into a separate business with partial employee ownership, a step often taken ahead of a listing. The company is exploring an IPO, though no timeline has been set.</p> <p>Founded in 2018, T-Head designs chips for computing and storage. While it remains smaller than global leaders, it has made steady progress at home. The unit recently signed a deal to supply AI accelerators for a large data center run by China Unicom, placing its chips alongside other domestic rivals.</p> <h2><strong>Why China's AI Chip Push Is Gaining Speed</strong></h2> <p>AI chips are in short supply, and demand is rising fast as companies build larger data centers and AI systems. In China, this has increased the push to cut reliance on U.S. chipmakers, lifting interest in local chip developers like T-Head.</p> <p>Recent listings and IPO plans by other Chinese chip firms have also drawn strong investor interest. Expectations of policy support from Beijing are adding to that momentum, even though many of these companies are still in early stages.</p> <p>Beyond Alibaba, other Chinese tech giants, including Baidu (BIDU), are also developing their own chips as they look for local alternatives to Nvidia hardware, which faces export limits into China.</p> <h2><strong>AI Sits at the Center of Alibaba's Strategy</strong></h2> <p>Alibaba has been designing its own chips for years to support its cloud and data center business. As it pushes deeper into AI, that chip work is becoming more important, linking software, services, and the hardware needed to run them.</p> <p>Alibaba is backing this strategy with heavy spending. Chief executive Eddie Wu has pledged more than $53 billion for AI and infrastructure, underlining how important this shift is to Alibaba's future.</p> <h2><strong>Is Alibaba Stock a Buy Now?</strong>   </h2> <p>Wall Street remains constructive on the stock. Alibaba stock carries a Strong Buy consensus rating based on 14 unanimous Buy ratings over the past three months. The average BABA price target stands at $203.09, suggesting roughly 20.41% upside from current levels.</p></div>

<p>Alibaba (BABA) is reportedly moving towards a public listing of its AI chip unit, T-Head, amid rising investor interest in AI chipmakers. Following this news, Alibaba's shares rose about 5% in pre-market trading. The company plans to restructure T-Head into a separate business with partial employee ownership, exploring an IPO without a set timeline. T-Head, founded in 2018, has made progress in the AI chip market, recently signing a deal with China Unicom. Wall Street maintains a Strong Buy consensus on Alibaba stock, with a price target suggesting a 20.41% upside.</p>

- Alibaba is reportedly moving toward a public listing of its AI chip unit, T-Head, as investor interest in AI chipmakers increases amid restrictions on Nvidia's products in China.  
- The company plans to restructure T-Head into a separate business with partial employee ownership and is exploring an IPO, although a timeline is not yet established.  
- T-Head has signed a deal to supply AI accelerators for a China Unicom data center, as demand for AI chips rises in China, prompting a shift to local chip developers.

Alibaba (BABA) Stock Is Rising Again — Is an AI Chip IPO the Next Catalyst?