Alibaba’s (BABA) digital technology and intelligence unit, Alibaba Group, has unveiled its new server chips for use in data centers. Additionally, the company has confirmed the development of proprietary servers dubbed Panjiu. BABA shares fell 0.70% to close at $166.82 on October 18.
Alibaba is a Chinese company that provides technology infrastructure and marketing reach to merchants’ brands and retailers. It operates through core segments of e-Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives.
Yitian 710 is the new chip that together with the proprietary servers will enhance cloud services. Additionally, it should help in optimizing computing performance and energy efficiency. The unveiling of the two is part of Alibaba’s push to strengthen its computing capabilities.
Alibaba Cloud Intelligence President Jeff Zhang has confirmed plans to use the chips to enhance current and future businesses around the ecosystem. Additionally, there are plans to offer next-generation computing services powered by the new chips. (See Top Smart Score Stocks on TipRanks)
The President has confirmed plans to continue working with Nvidia, AMD, and Arm to innovate computing infrastructure and offer extensive computing services. The Yitian 710 chips are built on 5nm process technology and powered by 128 Arm cores with 3.2GHz top clock speeds to deliver excellent performance and energy efficiency.
On the other hand, the proprietary servers, Panjiu, were specifically designed for the next generation of cloud-native infrastructure. They are well-equipped for general purposes, artificial intelligence computing, and high-performance storage.
Goldman Sachs analyst Piyush Mubayi recently reiterated a Buy rating on the stock and lowered the price target to $253 from $303, implying 51.66% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 23 Buys, 1 Hold, and 1 Sell. The average Alibaba price target of $247.04 implies 48.09% upside potential to current levels.
Related News:
Avalara Acquires CrowdReason; Street Says Buy
Verizon to Provide Private Mobile Edge Computing for Enterprises
PLBY Group to Acquire Dream for $30M; Street Says Buy
