{"id":645026,"date":"2026-05-15T16:38:15","date_gmt":"2026-05-15T16:38:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/645026\/"},"modified":"2026-05-15T16:38:15","modified_gmt":"2026-05-15T16:38:15","slug":"forget-cerebras-systems-ipo-and-focus-on-this-tech-giant-instead","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/645026\/","title":{"rendered":"Forget Cerebras Systems\u2019 IPO and Focus on This Tech Giant Instead"},"content":{"rendered":"

Quick Read <\/p>\n

Alibaba (BABA) reported fiscal 2026 revenue of $148.40 billion and net income of $14.81 billion, with Cloud Intelligence Group revenue at $6.035 billion up 38% YoY and AI-related products contributing 30% of external cloud revenue, while trading at just 0.333 times sales compared to unprofitable chip IPO competitors.<\/p>\n

Alibaba\u2019s full-stack AI infrastructure including the Qwen LLM, proprietary T-Head Zhenwu chips, and 300 million monthly active users on the Qwen consumer app positions it as a commercialized AI platform that U.S. chip export restrictions easing only benefits further.<\/p>\n

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Alibaba wasn’t one of them. Get them here FREE<\/a>.<\/p>\n

The hot ticker on every retail trader’s screen this week is Cerebras Systems (NASDAQ:CBRS<\/a>), the AI chip designer whose IPO surged 65% on its IPO day and is now drawing the predictable wave of FOMO from anyone hunting the next Nvidia.<\/p>\n

But here’s what you should actually be watching.<\/p>\n

Cerebras went public into the most crowded narrative in markets. The stock closed at $311.07, already well off its 52-week high of $385. There is no trailing P\/E, no revenue per share, no operating margin and no analyst target price available. You are buying a story competing directly against Nvidia, the hyperscalers’ in-house silicon, and a dozen other AI chip startups. For a retirement-focused portfolio, this is the textbook setup for post-IPO overextension.<\/p>\n

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Alibaba wasn’t one of them. Get them here FREE<\/a>.<\/p>\n

Meanwhile, Alibaba (NYSE:BABA<\/a>), a $340.98 billion Chinese tech giant trading at a forward P\/E of 21, a PEG ratio of 0.857, and a price-to-sales ratio of 0.333. The market is ignoring it.<\/p>\n

Three reasons to redirect your attention while the crowd chases chips.<\/p>\n

First, Alibaba’s AI and cloud business is already commercialized at scale. Fiscal Q4 2026, reported May 13, 2026, put Cloud Intelligence Group revenue at $6.035 billion, up 38% YoY, with AI-related products posting an 11th consecutive quarter of triple-digit growth and now contributing 30% of external cloud revenue. CEO Eddie Wu said, “Alibaba’s full-stack AI investments have progressed from incubation to commercialization at scale.” The full stack includes the Qwen large language model, proprietary T-Head Zhenwu PPU chips with more than 100,000 deployed, and a Qwen consumer app that surpassed 300 million monthly active users. Recent easing of U.S. chip export restrictions only widens that runway.<\/p>\n

Second, the consolidated business dwarfs the IPO story stock. Fiscal year 2026 revenue came in at $148.40 billion, net income at $14.81 billion, EPS at $3.89. Total assets sit at $276.83 billion, shareholders’ equity at $153.80 billion, cash and equivalents at $19.07 billion. Taobao Instant Commerce grew 57% YoY to $2.898 billion and 88VIP membership surpassed 62 million. The trailing P\/E is 25, EV\/EBITDA is 17, and the Street is on board: 8 strong buy, 31 buy, 2 hold and 1 strong sell ratings with a target price of $188.98.<\/p>\n

Third, capital is actively being returned. The board declared an annual cash dividend of $0.13125 per ordinary share, or $1.05 per ADS, roughly $2.5 billion aggregate, with a June 11, 2026 record date and July 6, 2026 payment. Alibaba repurchased 73 million ordinary shares for $1.046 billion in the fiscal year ended March 31, 2026 and raised $3.2 billion in convertible notes plus HK$12 billion in exchangeable bonds to fund cloud and international expansion. Capital is available and being deployed deliberately.<\/p>\n

Yes, Q4 carried a $123 million operating loss, adjusted EBITA fell 84% to $740 million, and free cash flow was negative $2.51 billion on $3.90 billion of capex. The market is treating that investment cycle as a reason to look away. That is precisely why BABA trades at 0.333 times sales while money pours into a chip IPO with no public fundamentals attached.<\/p>\n

The analyst who called NVIDIA in 2010 just named his top 10 AI stocks <\/p>\n

This analyst’s 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Quick Read Alibaba (BABA) reported fiscal 2026 revenue of $148.40 billion and net income of $14.81 billion, with…\n","protected":false},"author":2,"featured_media":645027,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[5310,28,278369,278368,53531,6199],"class_list":["post-645026","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alibaba","tag-business","tag-cloud-intelligence-group","tag-cloud-intelligence-group-revenue","tag-export-restrictions","tag-ipo"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/645026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=645026"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/645026\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/645027"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=645026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=645026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=645026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}