According to a research report from UBS, market sentiment toward BABA-W (09988) is currently skewed to the negative side in the near term, though the bank believes the related impact may be overestimated. The reasons include Alibaba Cloud having the largest deployed computing capacity in China, with its in-house T-Head chips serving as a supplement, as well as potential room for price increases if supply becomes tighter.

New York-based short seller Culper Research previously stated that Singapore-headquartered Megaspeed used intermediaries in Southeast Asia to obtain advanced Nvidia (NVDA.US) chips in order to circumvent US trade restrictions, and claimed that Alibaba (BABA.US) may have provided billions of dollars in funding to Megaspeed for the purchase of these chips.

After Jensen Huang resigned from his roles as Nvidia's chief executive and director, US House Speaker Johnson said that a growing consensus is forming within the US Congress in support of restricting semiconductor chip exports to China.

The original report said these developments have put pressure on Alibaba's share price in recent days, pushing it below HK$100.