Alibaba (BABA) officially announced that its chip company, Pingtouge, plans to spin off and list independently in Hong Kong. Morgan Stanley has given it a valuation of $28 billion to $83 billion! Based on the current annualized revenue of $1.39 billion, $28 billion already represents a price-to-sales (PS) ratio of 20, and $83 billion a PS ratio of 60. The market is calculating the realization of this from 2027 to 2030. Optimistically, over the next 3-5 years, Pingtouge's annual revenue will grow to 50 billion RMB, or $6.9 billion, corresponding to a PS ratio of 4-12. The contribution of computing power will increase from the current 10% to 40-50%, with 700,000 GPUs shipped by 2027. Pingtouge is aiming to become China's NVDA!