<div id="readability-page-1"><p><strong>Alibaba Group Holding (BABA)</strong> has officially responded to reports linking it to a U.S. investigation involving the alleged smuggling of restricted Nvidia (NVDA) AI chips into China. According to the report, U.S. authorities suspect that servers containing advanced Nvidia chips were routed through Thailand-based OBON Corp. to bypass export controls.</p><h3>Claim 55% Off TipRanks</h3>Forget margin or options. Here's how the pros trade NVDA <p>The investigation stems from a March 2026 indictment in which U.S. prosecutors accused individuals tied to Super Micro Computer (SMCI) of routing servers through Taiwan and Southeast Asia before shipping them into China. Prosecutors allege that more than $2.5 billion worth of AI technology moved through the network, including over $500 million shipped between April and mid-May 2025.</p> <p>The development follows a <em>Bloomberg report</em> stating that Alibaba was allegedly one of multiple end customers that received some of the servers involved in the investigation.</p> <h2><strong>Alibaba's Official Response</strong></h2> <p>In a statement issued on Friday, May 8, Alibaba clarified its position regarding the firms named in the U.S. investigation. The company emphasized that it maintains a &#34;compliance-first&#34; approach to its data center operations:</p> <p>It told <em>Reuters</em> that it has no business relationship with Super Micro, OBON, or any third-party brokers named in the indictment. Alibaba also said it does not use, and has never used, banned Nvidia chips in its data centers.</p> <p>While the U.S. Justice Department has previously indicted individuals associated with <strong>Super Micro</strong>, Alibaba has not been formally charged with any wrongdoing. The company's statement seeks to resolve market speculation before it reports to shareholders.</p> <h2><strong>All Eyes on Alibaba's Q4 Earnings on May 13</strong></h2> <p>The report comes just days before Alibaba is set to release its Q4 2026 earnings on May 13.  Wall Street analysts expect earnings of $0.90 per share, down from $1.83 in the year-ago quarter. Meanwhile, revenue is projected at about $36.33 billion, representing an 11% year-over-year increase.  </p> <p>Analysts will closely watch the company's cloud and AI business, especially as investors look for signs that Alibaba's AI growth strategy continues gaining momentum despite rising geopolitical pressure.</p> <h2><strong>Is BABA Stock a Good Buy?</strong></h2> <p>Wall Street remains constructive on the stock. Alibaba carries a Strong Buy consensus rating based on 14 Buy ratings and two Holds over the past three months. The average BABA price target stands at $184.07, suggesting roughly 30.55% upside from current levels.</p></div>

09988

BABA

SOXX

<p>Alibaba Group has responded to allegations linking it to a U.S. investigation into the smuggling of Nvidia AI chips into China. The company emphasized its compliance-first approach and denied any business relationship with the firms involved in the probe. Alibaba has not been charged with wrongdoing. This statement comes ahead of its Q4 earnings report on May 13, where analysts expect earnings of $0.90 per share and revenue of $36.33 billion. Wall Street maintains a Strong Buy consensus rating for Alibaba stock, with a price target suggesting a 30.55% upside.</p>

- Alibaba Group has officially addressed allegations linking it to a U.S. investigation regarding the smuggling of restricted Nvidia AI chips into China.  
- The investigation is based on a March 2026 indictment involving individuals accused of routing servers through Southeast Asia, with Alibaba stating it has no ties to any implicated parties or banned chips.  
- The clarification comes ahead of Alibaba's Q4 earnings report on May 13, where analysts anticipate a decrease in earnings per share amid increased scrutiny of the company's AI initiatives.

Tip Ranks

BABA-W

Alibaba

iShares Semiconductor ETF

T-Rex 2X Long NVIDIA Daily Target ETF

Direxion Daily NVDA Bull 2X Shares

Guotai CSI Computer Theme ETF

VanEck Semiconductor ETF

Guotai CES Semiconductor Chip Industry ETF

Global X E-commerce ETF

GTJA Allianz CSI All Share Semiconductors & Semiconductor Equipment ETF

BABA 2x Long Daily ETF - GraniteShares

Direxion Semicon Bull 3X

SPDR S&P Semicon

GraniteShares 2x Long NVDA Daily ETF

ProShares Online Retail

Global X Cloud Computing ETF

Krne Csi China Internet

KraneShares 2x Long BABA Daily ETF

YieldMax NVDA Option Income Strategy ETF

Amplify Online Retail ETF

YieldMax BABA Option Income Strategy ETF

Alibaba (BABA) Makes a Statement on Alleged $2.5B Nvidia (NVDA) Chip Smuggling Probe