Nvidia Faces New Challenge from Huawei in AI Chip Market

On Monday, Nvidia shares experienced a 4% drop, a direct response to the emerging competition from China's Huawei Technologies in the artificial intelligence chip sector. This development has sparked widespread interest and concern among investors and industry watchers alike.

Huawei's Ascend 910D Chip: A Potential Game Changer

Reports from The Wall Street Journal indicate that Huawei is currently testing its new Ascend 910D chip, with ambitions to outperform Nvidia's renowned H100. The tech giant has already begun distributing its Ascend 910B and 910C chips to leading Chinese technology companies, including ByteDance, signaling its serious intent to dominate the AI chip market.

Market Reaction and Nvidia's Stock Performance

The announcement led to a noticeable dip in Nvidia's stock, which fell by 3.56% to $107.11 after hitting its intraday low. This fluctuation underscores the volatile nature of the tech industry and the intense competition among its key players.