Nvidia Shares Dip as Huawei Prepares Rival AI Chip Ascend 910D
Nvidia (NASDAQ: NVDA) shares dipped nearly 1% in pre-market trading Monday after the Wall Street Journal reported that Huawei Technologies is preparing to test its latest AI processor, the Ascend 910D.
Sources familiar with the matter revealed that the Ascend 910D is expected to roll out in sample batches by late May. Huawei is collaborating with Chinese tech companies to test the chip’s capabilities, seeking to establish a domestic alternative to Nvidia’s H100 chip, which is widely used for AI development.
The move underscores Huawei’s rapid advancement in semiconductor technology, despite enduring nearly six years of U.S. trade restrictions. In 2023, Huawei showcased its resilience by launching the Mate 60 smartphone equipped with an in-house chipset.
Huawei’s aggressive push into AI hardware comes as U.S. export controls continue to tighten, severely limiting Nvidia’s ability to sell high-end chips like the H20 in China without a special license. Nvidia recently announced a $5.5 billion charge linked to the export curbs impacting the H20 chip.
In addition to the upcoming Ascend 910D, Huawei has been increasing shipments of its earlier AI chips — the Ascend 910B and 910C — and is developing large-scale computing systems to maximize their performance, according to the report.
Despite the challenges, Nvidia’s stock remains up about 70% year-to-date. However, the growing competition from Huawei signals potential turbulence ahead as the AI chip race intensifies.
