Nvidia Shares Drop Amid Rising Competition

In a surprising turn of events, Nvidia's stock experienced a 4% drop on Monday. This decline comes as Huawei Technologies, China's tech giant, steps up its game in the artificial intelligence chip sector with its latest innovation.

Huawei's Ambitious Move

Reports from The Wall Street Journal reveal that Huawei is currently testing its new Ascend 910D chip, which aims to outperform Nvidia's H100. The company has already begun distributing its Ascend 910B and 910C chips to leading Chinese tech firms, including ByteDance, signaling its strong entry into the market.

Market Reaction

The announcement led to Nvidia's stock hitting an intraday low, ultimately closing with a 3.56% decline at $107.11. This development marks a significant moment in the ongoing competition between global tech giants in the AI chip industry.