Combined valuation of Alibaba and Tencent ($1.07 trillion) now trails South Korean chipmakers Samsung Electronics and SK Hynix ($1.14 trillion).
This shift reflects a growing investor focus on AI infrastructure. AI infrastructure boosts demand for memory components, benefiting chip manufacturers.
The trend reflects changing tech sector priorities toward hardware. Alibaba's financial health remains robust.
The company maintains a diversified revenue stream from e-commerce, cloud computing, and digital media segments. Alibaba boasts solid profitability metrics and a strong balance sheet.