Market sources suggest BABA-W (09988.HK) -3.100 (-1.789%) Short selling $370.51M; Ratio 5.392% is considering a spin-off and separate listing of its AI chip division, T-Head, JPMorgan released a research report saying. BABA-W may first restructure T-Head into an employee-owned company before exploring an IPO, though the specific timing remains unclear. Founded in 2018, T-Head primarily develops chips for data center, AI and IoT, serving as a core component of BABA-W's 'AI + cloud infrastructure' strategy.Related NewsHSBC Research Lists Focus HK Stocks w/ Most Institutional Attention (Table)The aforementioned report was surprising, as it implies BABA-W is reconsidering the possibility of unlocking value through capital markets, the broker noted. Based on rough calculations referencing peer EV/revenue multiples and aggressive 2026 revenue assumptions, if T-Head were to list independently, its valuation could range between US$25 billion and US$62 billion (approx. $195-483.6 billion), representing roughly 6–14% of BABA-W's current market capitalization.Given T-Head's high dependency on its parent company, BABA-W will require time to expand external client design and orders, strengthen independent governance and employee stock ownership mechanisms, and establish clearer independent economic relationships. These steps typically take over a year, making a spin-off and separate listing this year unlikely.Related NewsDaiwa: Mkt Preference Shifts from AI to Cyclical Industries; Mkt Gradually Shifts to Stimulus-Related Sectors After LNYTherefore, JPMorgan kept rating at Overweight on BABA-W, with a target price of $210.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-01-30 12:25.)