Morgan Stanley said that Pingtou's spin-off is expected to be a catalyst to unleash Alibaba's valuation potential. At the same time, self-developed chips can enhance supply resilience and support rising profit margins and return on invested capital. Analyst Gary Yu and others pointed out in the report that Alibaba is the preferred stock for reasons including its full-stack ability to cover chips, cloud computing, models, and applications. Pingtou aims to contribute 40-50% of computing power to achieve the 20GW global data center capacity target by 2032. Pingtou is expected to remain an Alibaba subsidiary after going public.

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