Alibaba Shares Outpace Tencent’s as Chip Exposure Fuels Demand

The torrid stock rally in Asian chipmakers is driving a divergence between China’s two internet giants, with Alibaba Group Holding Ltd. gaining an edge over rival Tencent Holdings Ltd. due to investor enthusiasm about its ambitious semiconductor unit.

Shares of Alibaba, which plans to list its chipmaking arm T-Head, have rallied 11% this week, versus about 2% for Tencent that focuses more on artificial intelligence models and applications.