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Divergence03STOCKS2026-05-20

Alibaba unveils Zhenwu M890 AI chip — but FY EPS consensus has weakened amid earnings pressure

  • Alibaba (9988.HK) launched the Zhenwu M890 AI chip on May 20 — described as 3x faster than its predecessor and designed to address Nvidia hardware constraints from U.S. export restrictions.
  • Recent weeks have seen downward pressure on FY EPS consensus, with analyst estimates reflecting elevated AI and cloud infrastructure spending.
  • The stock trades 30% below its 52-week high, yet analyst sentiment remains predominantly bullish — a tension between near-term earnings pressure and long-term AI hardware ambitions.

Supporting queries

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Conclusion

News (Reuters, Bloomberg, CNBC, May 20, 2026); Zhenwu M890 confirmed 3x performance vs. 810E; 52-week high $192.67 USD (9988.HK); recent earnings reports show significant EPS pressure from AI/cloud capex; analyst consensus remains bullish (38 buy vs. 1 sell per Investing.com); stock price ~$133–136 USD as of May 19, 2026.

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