Nvidia Faces Stiff Competition from Huawei in AI Chip Sector

In a significant market shift, Nvidia shares fell 4% on Monday, a direct response to the emerging competition from China's Huawei Technologies. The tech giant is making waves in the artificial intelligence chip sector with its latest innovation.

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

Reports from The Wall Street Journal reveal that Huawei is currently testing its new Ascend 910D chip, with ambitions to outshine Nvidia's H100. This move signifies Huawei's commitment to leading the AI chip market, having already distributed its Ascend 910B and 910C chips to major Chinese tech companies, including ByteDance.

Market Reaction to Nvidia's Decline

The impact on Nvidia was immediate, with its stock hitting an intraday low and ultimately closing down by 3.56% at $107.11. This development marks a pivotal moment in the AI chip industry, as competition heats up between global tech leaders.