Alibaba stock gained Friday and appeared set to close the week more than 13% higher. Gains for the China tech giant followed news that Nvidia has clearance to sell a version of its AI chips in China.
U.S.-listed Alibaba stock has gained more than 40% this year. But it has pulled back from a much stronger rally in the first three months of the year. Concerns about trade tensions between the U.S. and China dragged Alibaba lower, starting in late March.
The Nvidia news appears to have assuaged some concerns. Nvidia said late Monday that the U.S. government plans to grant licenses for the company to sell its H20 graphics processing units in China. The Trump administration halted sales of the AI chips to China in April, citing national security concerns.
Alibaba stock jumped 8% on Tuesday following the news. As China's top cloud services provider, Alibaba has been moving quickly to roll out AI services. That includes updates to it Qwen AI large language models. The tech giant has pledged to spend more than $50 billion over the next three years on AI-related infrastructure for its cloud business.
Nvidia Chief Executive Jensen Huang met with China's commerce minister Thursday, Reuters reported.
Meanwhile, China's gross domestic product grew 5.2% in the second-quarter, according to data released Tuesday. That was ahead of expectations. That could help ease investor concern that the U.S.-China trade war will weigh on the Chinese economy and, therefore, Alibaba's massive domestic e-commerce operations.
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Alibaba Stock Retakes 50-Day Moving Average
On the stock market today, U.S.-listed Alibaba stock is ahead 3% at 120.75. The gain pushed Alibaba stock back above its 50-day moving average for the first time since June 11, according to IBD MarketSurge.
Alibaba's Relative Strength line is also rising. Additionally, it has a Relative Strength Rating of 85, compared to 66 one week ago, for the metric, which measures a stock's price performance over the last 12 months.
IBD MarketSurge show that Alibaba stock has formed a consolidation pattern on its weekly chart, with an entry at 134.51.
It has been a strong Friday for China tech stocks overall. U.S.-listed Shares of Alibaba e-commerce rival JD.com were up 4% in recent action at 34.02, set to close the week about 9% higher.
Shares of WeChat parent company Tencent were up 5% at 66.46 in recent over-the-counter U.S. trading. Online search company Baidu's U.S.-listed stock was up 2% at 89.03.
