On Tuesday, shares of Alibaba Group Holdings Ltd. hiked as it launched its new server chip Yitian 710, boosting its cloud computing business.
The e-commerce giant elevated 1.41% or 0.32 points to $21.28 per share, supporting its hike of 0.68% to 20.94 yesterday.
Accordingly, the move marked the latest foray of Alibaba into semiconductors, raising its competency against other leading cloud computing players.
In addition, it dovetails with the goal of the Chinese government in bolstering the chip sector and strengthening domestic tech capabilities.
Subsequently, the Yitian 710 is the firm’s second custom-made semiconductor after its initial AI chip Hanguang 800. It is based on the UK-based Arm Ltd. architecture.
Accordingly, the processor would proceed to the firm’s new server Panjiu, which focuses on artificial intelligence applications and storage.
However, the business did not give details about the availability of the chip and servers on the commercial market.
Alibaba is China’s most extensive cloud computing player by market share.
The segment plays a significant part in its growth and it accounts for about 8.00% of the total revenue.
Moreover, the business customized its chips to power up specific specifications to compete in the market.
Consequently, its main competitors in the sector also released their in-house server processors.
For instance, Huawei released its next-generation AI chip to uplift its revenue in the cloud computing segment. Meanwhile, US sanctions continue to hit its smartphone business.
Then, Amazon.com relied on its Graviton chips to power its cloud computing infrastructure.
Similarly, its share price boosted 1.11% or 37.72 points to 3,446.74 today.
Following the move of Alibaba, search giant Baidu and phone maker Xiaomi already invested in semiconductor chips.
Asian Pacific Stocks Edged Up as Alibaba Rose
Furthermore, shares in the Asia Pacific market traded green as tech stocks rallied.
In China, the Shanghai Composite index increased 0.70% or 25.10 points to $3,593.23 per share.
Similarly, the Shenzhen Component index elevated 0.93% or 132.89 points to $14,482.91 per share.
Correspondingly, Hong Kong’s Hang Seng index amplified 1.18% or 298.77 points to $25,708.52 per share.
In Japan, the Nikkei 225 index improved 0.69% or 200.80 points to $29,226.26 per share.
At the same time, the broader TOPIX index climbed 0.38% or 7.77 points to $2,027.00 per share.
Elsewhere, South Korea’s KOSPI jumped 0.71% or 21.48 points to $3,028.16 per share.
Then, Australia’s S&P/ASX 200 index inched up 0.09% or 6.40 points to $7,387.50 per share.
Meanwhile, other tech giants trailed around the hike of Alibaba.
For instance, the web-based shopping platform Meituan soared 2.07% or 0.75 points to $36.79 per share.
Consequently, e-commerce firm JD.com surged 1.13% or 0.46 points to $41.32 per share.