Alibaba Group (BABA) Has Shown Interest to Buy H200 Chips From NVDA

​Alibaba Group Holding Limited (NYSE:BABA) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 10, Reuters reported that Alibaba Group Holding Limited (NYSE:BABA) has shown interest in buying Nvidia’s H200 AI chip, as the Trump administration has allowed Nvidia to export its chips to China.

​According to the report, Chinese companies, including Alibaba, are yet to get a green light from the government to import chips from Nvidia. If the government allows it, this will be important news for Alibaba Group Holding Limited (NYSE:BABA) and other Chinese tech companies. These companies are currently using H20 chips, which are almost six times slower than the latest H200 chips, produced by Nvidia.

​The report also highlighted that the Chinese government, in the last week, called representatives from Alibaba Group Holding Limited (NYSE:BABA), ByteDance, and Tencent to assess the demand for H200 chips. Alibaba and other companies in China are keen on securing these latest chips due to their ability to train AI models faster and more efficiently.

​That said, Wall Street has a mixed opinion on the stock. Recently, on December 9, Arete downgraded the stock to Neutral from Buy with a $172 price target. However, earlier on December 2, Susquehanna reiterated a Buy rating on the stock with a $190 price target.

​Alibaba Group Holding Limited (NYSE:BABA) is a technology company that operates primarily in e-commerce, cloud computing, and online payment services.

While we acknowledge the potential of BABA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BABA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.