Alibaba Falls 13.68% and Tencent 7.91% in a Week as Chip Curbs Fears Grow
Key Facts
Alibaba shares fell 13.68% and Tencent shares fell 7.91% between the closes on November 6 and November 13, 2026, according to data cited by FourWeekMBA, in a week when investors assessed the impact of a possible tightening of U.S. chip export controls on Chinese AI companies. The Financial Times linked the sell-off to concerns about tighter restrictions on chip sales, while FourWeekMBA quoted Kenny Ng, a strategist at Everbright Securities International, as saying Washington could tighten export controls "at the policy and regulatory level." In the November 13 session, Alibaba shares closed in Hong Kong at 90.55 Hong Kong dollars, down 3.46% from the previous session, while Tencent shares ended trading at 386.6 Hong Kong dollars, down 3.06%. Those daily moves came at the end of a week of accumulated losses for both companies, as the market focused on risks to access to advanced AI processors. By contrast, shares in Chinese AI chip designer Cambricon rose 21.92% over the week through the November 13 close, according to FourWeekMBA's calculation based on Yahoo Finance data.
The concerns center on the possibility that Chinese AI companies could lose access to Nvidia processors through data centers outside China, according to a report published by Investing.com. Reuters reported that Chinese companies are seeking to rent computing capacity powered by Nvidia processors from data centers abroad, fearing a case involving the company's chief executive could prompt Washington to tighten restrictions on the remote use of advanced processors. Reuters also reported that a Chinese university with deep ties to the People's Liberation Army bought H200 chips in the previous month, despite being on the U.S. export blacklist. These developments are heightening investor sensitivity to the computing supply routes on which Chinese technology companies rely. The gap between platform stocks and chipmakers also emerged in the November 12 session, when SMIC shares rose 2.4% in Shanghai and 1.7% in Hong Kong, while AI developers' shares came under pressure.
The risks extend beyond chip purchases to plans to build and equip data centers. Reuters reviewed more than 150 procurement notices, investment plans, construction contracts and company disclosures in China, identifying projects and equipment agreements worth a combined more than 23 billion yuan, or 3.2 billion dollars. Projects under development include data centers designed to use Nvidia H100, H200 and H800 processors, which are subject to export restrictions, according to Reuters. The agency said tighter restrictions could expose operators to delays, supply disruptions or costly redesigns. The project value estimate includes buildings, power systems and other infrastructure, and does not represent spending on Nvidia chips alone; it also includes planned investments and signed contracts alongside completed facilities.
In U.S. trading, Alibaba's listed American depositary receipts closed at 94.36 dollars, and Tencent's receipts at 50.12 dollars on November 12, according to closing data provided to EL7. In the same Thursday session, Nvidia shares fell as much as 14% before paring losses to 4.3% at the close, according to Investing.com, adding to volatility in AI stocks. Markets are awaiting Alibaba's results for the quarter ended September 30, 2026, before the U.S. market opens on November 19; the company will hold a conference call the same day. The results are expected to give investors an update on the company's performance in a quarter marked by this volatility, while chip-curb concerns continue to weigh on the sector's outlook. The upcoming results follow a week marked by a clear divergence between declines in Chinese platform stocks and gains in some domestic chip companies.