New York, Jan 31, 2026, 11:08 (EST) — Market closed.
- Alibaba’s U.S.-listed ADRs fell another 2.7% on Friday, closing at $169.56 and deepening their two-day decline.
- Sources told Reuters that China is still ironing out the conditions for approvals allowing Alibaba and other companies to purchase Nvidia’s H200 AI chips.
- Monday’s focus includes Alibaba’s debut of its AI chip alongside weak factory data from China.
Alibaba Group Holding Ltd.’s U.S.-listed shares dropped 2.7% on Friday, closing at $169.56. The Nasdaq slipped 0.9%, while trading volume for Alibaba remained below its 50-day average. The ADRs now stand roughly 12% below their 52-week high from Oct. 2, highlighting just how fast sentiment can shift in China tech stocks. MarketWatch
The next trigger point is in chips. China has conditionally approved AI startup DeepSeek and major local players like Alibaba, ByteDance, and Tencent to purchase Nvidia’s H200 chips, according to two sources familiar with the matter who spoke to Reuters. The specifics of regulatory conditions are still being finalized by China’s state planner. Nvidia CEO Jensen Huang said this week he hadn’t “received such information” and believed the licence was still being worked out, leaving uncertainty over timing and order sizes. Reuters
Alibaba is advancing its chip ambitions. According to Caixin, its semiconductor unit T-Head rolled out a new AI processor named Zhenwu 810E. The chip handles both training and inference—model building and execution—and slots between Nvidia’s A800 and H20 in terms of hardware specs. Caixin Global
China’s newest factory data added to the downside pressure. The official manufacturing purchasing managers’ index dropped to 49.3 in January from 50.1 in December, missing forecasts and signaling contraction amid weak domestic demand. Reuters
Alibaba’s situation hinges on that context since its core strength remains with Chinese shoppers and sellers—not just the hype around cloud computing. When demand softens, it usually hits ad spending, discretionary purchases, and shipping volumes—metrics investors zero in on whenever the AI narrative takes a breather.
The chip angle runs counter. Should Chinese approvals lead to actual shipments, it could relieve a major bottleneck in cloud computing and model training. Nvidia’s high-end chips remain the benchmark, despite domestic companies pushing to catch up.
Markets reopen Monday, with traders eager for a clearer picture of Beijing’s conditions and how fast those could translate into shipments. Alibaba has stayed silent on the reported approvals, leaving the door open for rumor-fueled moves.
There’s a clear downside risk. Any shift in Beijing’s stance, increased pressure from Washington, or new twists in U.S.-China tech regulations could choke off access to advanced chips. That would hit the very part of Alibaba’s story investors have been valuing most.
Outside of the China news, global interest rates remain key for high-growth tech stocks. The focus shifts to the U.S. Employment Situation report on Feb. 6. That data could quickly shift interest rate forecasts and investor risk appetite. bls.gov
