BABA Stock Forecast: Alibaba Group rises as Cloud platform moves to in-house silicon chips

NYSE: BABA gained 2.66% during Wednesday’s trading session.
AliBaba Cloud is moving towards making silicon chips in-house.
Chinese ADRs rise again as Nio leads the charge with a new SUV model.

Stocks Reporter FXStreet

NYSE: BABA made gains for the second straight day to start the week as the FOMC rate hike proved to be the tide that raised all boats. On Wednesday, shares of BABA gained 2.66% and closed the trading session at $108.03. The FOMC implemented its highest interest rate hike since 1994 with a 75 basis point raise to try to rein in inflation rates in the US economy. All three major indices rose as the Dow Jones gained 303 basis points and snapped its five-day losing streak. The S&P 500 added 1.46% and the NASDAQ led the way, rising by 2.50% during the session.

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AliBaba’s Cloud division is following rivals like Amazon’s (NASDAQ:AMZN) Amazon Web Services by manufacturing its own chips in house. The company will begin producing its own CIPUs or Cloud Infrastructure Processing Units. AliBaba revealed the news at its annual technology summit this week, and the announcement comes on the heels of AliBaba building its own DPUs or Data Processing Units for Chinese data centers. AliBaba believes the chips can decrease network latency by up to 5 microseconds and will drastically improve computing performance.

BABA stock price

Chinese ADRs had another strong session as investors gained more confidence in re-investing into the Chinese sector. Other ADRs on the rise included JD.Com (NASDAQ:JD), Bilibili (NASDAQ:BILI), and Nio (NYSE:NIO). Shares of Nio rose by 7.77% on Wednesday after the virtual launch of its new SUV model, the ES7. Nio’s stock reclaimed the $20 price level on Wednesday, and Deutsche Bank and Morgan Stanley were quick to reiterate their Buy ratings for the stock.

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Stocks Reporter

FXStreet

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