Nvidia Faces New Challenge from Huawei

In a surprising turn of events, Nvidia shares fell 4% on Monday, as the tech giant encounters stiff competition from China's Huawei Technologies in the rapidly evolving artificial intelligence chip market.

Huawei's Ascend 910D Chip Aims to Outperform

Reports from The Wall Street Journal reveal that Huawei is currently testing its new Ascend 910D chip, designed to surpass the capabilities of Nvidia's H100. This move signifies Huawei's ambitious push into the AI sector, with its Ascend 910B and 910C chips already being supplied to major Chinese tech companies, including ByteDance.

Market Reaction to Nvidia's Decline

The announcement led to a noticeable dip in Nvidia's stock, which saw a 3.56% decline, dropping to $107.11 at its intraday low. This development underscores the growing competition in the AI chip industry and its impact on market leaders.