Alibaba hit by Nvidia chip scrutiny jitters

Alibaba Group Holding shares fell sharply on November 12, 2026, as renewed concern over access to advanced Nvidia chips triggered a broader sell-off in Chinese artificial intelligence stocks. In Hong Kong trading, Alibaba’s stock dropped as much as 7.3%, dragging the Hang Seng Tech Index lower. In US markets, Alibaba’s New York–listed shares were down nearly 4% in premarket trading and were later quoted around 6%–7% lower intraday. The declines came as investors reassessed the regulatory risks facing Chinese cloud and AI businesses that rely on high-end US semiconductors.

The US Commerce Department is finalising rules that would reportedly prevent Chinese AI developers from remotely accessing advanced processors housed in data centres outside China.

Concerns about longer-lasting or broader restrictions contributed to a wider sell-off in Chinese AI-related names. Analysts noted that Chinese cloud companies have stockpiled chips since early 2026, but warned that extended curbs could slow research and development in artificial intelligence. For Alibaba, which operates a major cloud platform and AI services, any disruption to the flow of advanced Nvidia hardware is viewed as a material operational risk.

Regulatory and public attention has also turned to Nvidia’s distribution channels amid a leadership change at the US chipmaker.

Megaspeed’s founder has been linked to an affair with Nvidia’s chief executive Jensen Huang and is suspected of working for Chinese intelligence. Nvidia has said it has no reason to believe its technology or US national security interests were compromised. Megaspeed has pledged to cooperate with US authorities and to review its chip inventory and export control procedures. Nonetheless, the association between Alibaba’s AI infrastructure and Megaspeed has contributed to investor unease about the durability of Alibaba’s access to Nvidia hardware.

Amid the turmoil, Nvidia appointed chief financial officer Colette Kress as interim chief executive and began a search for a permanent successor after Jensen Huang resigned. The leadership change at Nvidia added another layer of uncertainty for markets already focused on regulatory risk around high-performance chip exports.

Alibaba, meanwhile, is progressing with efforts to reduce its dependence on external chip suppliers. The company is building its own semiconductors and is preparing a Hong Kong listing for its chip unit T-Head, pending regulatory approval. Alibaba also expects production of its Zhenwu V900 AI chip to begin in early 2027, which would expand its in-house capabilities for AI computation. The group is scheduled to report earnings on November 19, with analysts expecting earnings per share of $1.39 on revenue of $40.35 billion, providing a near-term test of investor sentiment following the latest sell-off.