BABA: Nvidia’s China Return Fuels Rally — But $433.5M Ant Lawsuit Still Casts a Shadow
Court: S.D. New York
Case: 1:20-cv-09568
Alibaba 
BABA shares surged over 8% after Nvidia 
NVDA confirmed it will resume H20 GPU sales in China. The news comes amid easing of U.S. chip restrictions, sparking optimism across Chinese tech stocks including Baidu, Tencent, and JD.com.
📈 What Sparked the Rally
- Nvidia to resume H20 chip shipments to China with U.S. licensing assurances
- Launch of a China-specific RTX PRO GPU expected by September
- Alibaba, Baidu, and Tencent stocks jumped 8–9%
- Broader Hong Kong tech rally followed news of export policy easing
- Nvidia’s CEO to meet top Chinese officials at upcoming supply chain expo
This development could significantly benefit Alibaba’s cloud computing and AI operations, which have lagged due to limited chip access.
📊 Why It Matters for Alibaba
- AI and cloud growth had slowed under U.S. chip export bans
- Nvidia’s resumed shipments may revive Alibaba’s AI product roadmap
- Jefferies recently boosted Alibaba Cloud's revenue forecast to +23% YoY
- Alibaba is spending $53B through 2027 on AI and cloud infrastructure
🧾 But a $433.5M Settlement Still Casts a Legal Shadow
Alibaba is finalizing a $433.5M settlement with investors over claims it misled them about Ant Group’s regulatory risks ahead of its failed 2020 IPO.
📆 Timeline Overview
- Nov 5, 2019: SAMR warns tech firms on antitrust laws
- Nov 2, 2020: Ant execs summoned by regulators
- Nov 3, 2020: Ant’s IPO suspended, BABA drops 8%
- Dec 24, 2020: Antitrust probe leads to 13% stock plunge
- Apr 22, 2022: Investors file lawsuit against Alibaba
💼 Allegations Include
- Misrepresenting Ant’s regulatory compliance
- Downplaying risk of IPO suspension
- Misleading investors about lending practices
💰 Investor Update
- Covers statements made from late 2019 to late 2020
- Payouts expected 8–12 months after court approval
👉 You can check more information about it and file for a payout HERE.
While Nvidia’s return to China boosts market sentiment, Alibaba’s legal hangover from the Ant IPO saga is far from over.