What's Going On With Alibaba Stock Thursday?

Alibaba Group Holding Limited’s (NYSE:BABA) stock jumped Thursday after reports it is moving toward an IPO of its in-house chip unit, T-Head, underscoring how China’s tech giants are racing to unlock the value of domestic AI hardware as export controls tighten and demand for Nvidia Corp. (NASDAQ:NVDA) alternatives accelerates.

Alibaba plans to start by restructuring T-Head into a business partly owned by employees, then weigh a public listing, though the timing and potential valuation remain unclear, Bloomberg reported on Thursday.

T-Head, founded by Alibaba in September 2018, designs ...