NVDA
🇨🇳 Huawei is preparing to test a new, powerful AI processor, the Ascend 910D, aimed at competing with Nvidia’s offerings, particularly within China.
📉 News of Huawei’s potential competitor has negatively impacted Nvidia’s stock price, causing declines as the market assesses the threat.
🤔 While the Huawei chip’s performance is still under evaluation and its development is in early stages, it represents a significant effort by China to build semiconductor resilience against U.S. restrictions, though Nvidia’s overall growth trajectory outside China remains a factor.
@bernardodegarcia:
“Huawei develops a new chip to compete with the U.S. China’s Huawei develops a new AI chip seeking to catch up to Nvidia. You’re seeing how the press moves, right? And it’s true that Huawei is preparing to test a new and powerful AI processor that the company hopes can replace some products manufactured by U.S.-based Nvidia. This news, ah, we already had it last week, but there’s nothing concrete yet. The progress of the electronic network leader from Shenzhen, Huawei, shows the resilience of the Chinese semiconductor industry against Trump’s efforts to hinder it, including blocking access to some Western chip manufacturing equipment, reported several newspapers between today and yesterday. Huawei has contacted some Chinese tech companies to test the viability of its new chip called Ascend 910D, also said, among other newspapers, the Wall Street Journal, citing unidentified people. The development is still in an early stage, and a series of tests will be needed to evaluate the chip’s performance and prepare it for customers, these people added. You know what’s curious? Last week, Nvidia’s shares indeed fell after this news. Nvidia’s shares fell after the news that Huawei was preparing a new AI chip. Now we’re getting news that Huawei is preparing to launch the new AI chip. Logical, right? Nvidia’s shares fall again. We will only escape the yoke once it’s demonstrated that Huawei’s chip is not enough to undermine Nvidia’s growth. And maybe it’s enough for certain Chinese companies, and certain Chinese companies stick with Nvidia’s chip. However, Nvidia’s growth in China is already gone, but well. Anyway, food for thought.”
Watch the exact part of the video where @bernardodegarcia talks about Nvidia here:
Watch the video on YouTube
Read more articles analyzing Nvidia (NVDA) at the provided link. NVDA stock.
