Nomura raises Alibaba's target price to $237, maintains "Buy" rating

AASTOCKS
2026.01.26 03:29

Nomura published a research report indicating that Alibaba (BABA.US) is reportedly planning to spin off its semiconductor chip business "T-Head" for an independent listing. Although the company has not officially confirmed the news, analysis shows that the likelihood of "T-Head" going public is quite high. The firm raised its target price for Alibaba's U.S. stock from $193 to $237, maintaining a "Buy" rating.

The firm believes that Alibaba has previously deliberately kept its chip business away from external attention, likely due to concerns over geopolitical risks. As U.S.-China relations stabilize and with a rapidly expanding customer base, the firm tends to believe that Alibaba will find it difficult to continue keeping its chip business, which is part of Alibaba Cloud, away from external scrutiny.

The firm also believes that "T-Head" can be ranked alongside Baidu (BIDU.US)'s Kunlun Chip and Cambricon Technologies (688256.SH) as one of China's top chip design companies

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