Alibaba Group Holding Ltd (NYSE: BABA) is trading higher Tuesday after the company confirmed plans to develop an in-house processor that would be used to power its cloud computing business.
Alibaba’s in-house semiconductor unit is developing its first custom-designed server processor which is expected to positively impact the company’s cloud business by leveraging performance and energy efficiency.
According to reports, the new chip has been under development since 2019.
Alibaba is expected to launch the chip during its Apsara Conference, which kicked off today and will take place through Oct. 22.
Alibaba is the world’s largest online and mobile commerce company. The company operates China’s most-visited online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
BABA Price Action: Alibaba has traded as high as $319.32 and as low as $138.43 over a 52-week period.
The stock was up 4.06% at $173.59 at time of publication.
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Source: finance.yahoo.com