- The stock price of Alibaba Group Holding Ltd (NYSE: BABA) increased by over 4% during intraday trading today. This is why it happened.
The stock price of Alibaba Group Holding Ltd (NYSE: BABA) increased by over 4% during intraday trading today. Investors are responding positively to Alibaba announcing a new server chip today as it plans to bolster its cloud computing operations against US-based rivals.
The processor is called Yitian 710. And these processors will be placed in new servers called Panjiu. Alibaba also said it will make the source code for its Xuantie series of IP cores, based on RISC-V open-source architecture will be available for the public.
These new chips and servers will not be sold directly to customers. Instead, Alibaba’s cloud computing customers will be buying services based on this technology. The servers are being built for artificial intelligence applications and storage.
Currently, Alibaba’s cloud computing business generates about 8% of its overall revenue.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
