BABA: Jefferies Says ‘Time to Bet’ as Nvidia Resumes AI Chip Supply — But $433.5M Ant IPO Suit Still
Court: S.D. New York
Case: 1:20-cv-09568
Alibaba 
BABA jumped over 8% on Tuesday after reports confirmed Nvidia will resume H20 AI chip sales in China. Jefferies analysts called this a “turning point” for China’s internet sector and named Alibaba their top AI recovery pick.
📈 Why Jefferies Is Bullish on Alibaba
- BABA leads among six AI/Cloud stocks poised to benefit (alongside Tencent, Baidu, Kuaishou, Meitu)
- Alibaba Cloud revenue forecast raised to 23% for Q2 FY26
- 7 straight quarters of triple-digit growth in AI services
- Q4 FY25 cloud revenue up 18% YoY to RMB30.1B
- $53B AI and cloud investment plan over next 3 years
- New data centers launched in Malaysia; Philippines launch expected by October
The upbeat forecast suggests Alibaba is well-positioned to capitalize on China’s AI and cloud resurgence.
🧾 But a $433.5M Settlement Still Casts a Legal Shadow
Alibaba is finalizing a $433.5M investor settlement over claims it misled shareholders on regulatory risks tied to Ant Group’s 2020 IPO collapse.
📆 Timeline Overview
- Nov 5, 2019: SAMR issues warnings on antitrust compliance
- Nov 2, 2020: Regulators summon Ant execs over lending rules
- Nov 3, 2020: Ant’s IPO suspended; BABA drops 8%
- Dec 24, 2020: BABA falls 13% amid antitrust probe
- Apr 22, 2022: Shareholders sue over misleading disclosures
💼 Allegations Include
- Downplaying regulatory risks tied to Ant’s IPO
- Misleading investors on compliance status
- Failing to disclose heightened government scrutiny
💰 Investor Update
- Covers misleading statements leading to IPO fallout
- Payouts expected 8–12 months after final court approval
👉 You can check more information about it and file for a payout HERE.
As Nvidia’s chip shipments reopen the AI race, Alibaba is well-positioned to ride the next growth wave — even as its Ant Group missteps continue to echo in the courts.