PingTouGe is going public, the chip IPO story behind Alibaba's over 4% surge

2026-01-22 14:32:03

U.S. stocks edged higher today, with the three major indices all in the green. The Dow Jones rose 0.5%, the S&P 500 increased 0.65%, and the Nasdaq gained 0.95%. The most eye-catching performer was Alibaba, whose stock price surged over 4%, directly breaking the recent oscillation pattern from the past few days. Behind this rally is a major news: Alibaba plans to spin off its AI chip manufacturing division “Pingtouge” for an IPO.

Overall U.S. stock market performance remains moderate

Today, the three major U.S. stock indices continued their recent upward trend, but the gains were relatively modest. This contrasts with the turbulence of the previous two trading days—on January 20, U.S. stocks fell sharply due to trade war concerns (Dow down 1.76%, S&P 500 down 2.06%, Nasdaq down 2.39%), but on January 21, after Trump signaled a “cooling” of tensions, the market rebounded quickly (all three indices rose over 1%). Today’s gentle rise indicates that market sentiment remains relatively stable.

Why did Alibaba lead the rally?

In this overall moderate market, Alibaba’s 4% increase stands out. The core driver is the news of the Pingtouge IPO.

According to relevant information, Alibaba’s chip capabilities are indeed formidable. The company’s large models are world-leading, cloud computing is domestically leading, and chip development is also at the forefront domestically. From a valuation perspective, Alibaba’s P/E ratio is only 22, which is considered reasonable among tech stocks. This is also why the market is optimistic—true innovative technology companies with low valuation are attractive targets.

Strategic significance of Pingtouge IPO

Pingtouge is Alibaba’s AI chip manufacturing division. Allowing it to go public independently has several important implications:

Focus on AI chip sector: The demand for chips in the AI era is exploding; a standalone IPO allows Pingtouge to concentrate on chip R&D and manufacturing.
Independent financing: It can secure capital dedicated to chip investment without relying solely on Alibaba Group’s funding.
Valuation unlocking: High-tech chip companies often receive higher valuations in capital markets, which can boost Alibaba’s overall valuation.
Domestic chip strategy: Demonstrates China’s commitment to自主创新 in AI chips.

Energy security as a new variable

It is worth noting that on January 21, Alibaba also established a joint venture with China Nuclear Power to provide robust power supply for AI data centers. This move creates a closed loop with the Pingtouge IPO—both chips and energy need to be domestically controlled. AI data centers consume enormous amounts of electricity, and having a stable nuclear power supply means Alibaba can better support its AI business expansion.

Summary

Alibaba’s 4% rise today is not just a simple technical rebound but a market recognition of its AI chip strategy. The Pingtouge IPO and collaboration with China Nuclear Power point in the same direction: Alibaba is making deep strategic moves for the AI era. From chips to energy, from R&D to supply chain, this company is playing a long-term game. For investors, this ongoing strategic evolution is worth close attention.

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