Chris Wood, a prominent Asia equity strategist at Jefferies, has reduced Alibaba's weight in his Asia ex-Japan...

Chris Wood, a prominent Asia equity strategist at Jefferies, has reduced Alibaba's weight in his Asia ex-Japan long-only portfolio by one percentage point to increase exposure to South Korean memory chipmakers Samsung Electronics and SK Hynix. In his June 28, 2026 newsletter, Wood describes the AI build-out as 'the most dramatic capex cycle' and argues that falling token costs will drive rising DRAM prices (Jevons Paradox), making memory suppliers the core beneficiaries. The rotation underscores a shift in institutional capital away from Chinese tech names like Alibaba toward AI hardware plays. While the cut is modest (1pp), Wood's explicit rationale—funding the 'mother of all cycles'—signals a potential broader reallocation theme. The move is based on a single source (Economic Times article) and represents a portfolio manager's tactical shift rather than a fundamental change at Alibaba. However, if replicated by other funds, it could weigh on BABA's near-term sentiment. Source: Economic Times.