Huawei Challenges Nvidia's AI Chip Dominance with New Ascend 920 Processor

Huawei aims to take on Nvidia's H100 with new AI chip | TechCrunch

Chinese tech conglomerate Huawei is looking to take on semiconductor behemoth Nvidia with a new advanced AI chip. Huawei is making progress developing its latest Ascend AI GPU, the Ascend 910D, according to the Wall Street Journal, citing sources familiar. The company has been reaching out to other Chinese firms to find test partners, the Wall Street Journal reports, and hopes that its chip will rival Nvidia's H100 series, which is popular for training AI models. The development comes just a few weeks after the U.S. imposed further restrictions on the export of certain AI chips to China. If Huawei is successful, it could help fill a void in the Chinese AI market left by increased chip export controls in the U.S. TechCrunch has reached out to Huawei for comment and will update this post if we hear back.

Huawei delivers advanced AI chip 'cluster' to Chinese clients cut off from Nvidia

Huawei has started the delivery of its advanced artificial intelligence chip "cluster" to Chinese clients who are increasing orders after being cut off from Nvidia's semiconductors because of Washington's export restrictions. The Shenzhen-based tech conglomerate has sold more than 10 sets of CloudMatrix 384, which links a large sum of chips together, according to two people with knowledge of the matter. Those who received the first deliveries include data centres that serve Chinese tech companies, one of the people said. Industry analysts have said they are impressed by the speed at which Huawei has built and begun to ship CloudMatrix, a system that connects 384 AI processors to provide the computing power needed to develop AI models and services. "The development of Huawei's CloudMatrix 384 means China now has an AI system capable of beating Nvidia's," said Dylan Patel, founder of chip consultancy SemiAnalysis. Huawei's new product comes as Chinese customers have been further restricted from Nvidia's AI chips. The US group said this month it would take a $5.5bn earnings hit after President Donald Trump made its H20 chip, tailored to comply with earlier export controls, require a special licence to be sold to Chinese customers. Huawei is accelerating its chip development to help domestic tech companies compete with their global peers despite their restricted access to the world's best technology in the area. It has told local clients its CloudMatrix performs significantly better than Nvidia's NVL72, a popular AI cluster used by US tech giants, which consists of 72 of its GB200 chips, in terms of computing power and memory, according to a company presentation reviewed by the Financial Times and people with knowledge of the matter. CloudMatrix 384 uses Huawei's Ascend 910C chips, which by themselves underperform Nvidia's GB200 processors. But Huawei has used a larger quantity of the chips -- connected by its "super node", through which all processors in the set are connected using optical technology -- to boost the cluster's overall performance. In a company presentation, Huawei claimed CloudMatrix outperformed NVL72 in key metrics, saying it was 67 per cent higher in compute and more than three times larger in aggregate memory capacity. "It is compensating for weaker individual chip performance with advanced networking to boost the chip performance in a cluster," said Patel at SemiAnalysis. Industry analysts said Huawei had leveraged its background in telecommunications to improve its chip systems' performance. Despite the strong metrics, CloudMatrix 384 has several disadvantages compared with Nvidia's rival product, said industry experts. Due to the use of more chips, CloudMatrix 384 has much higher energy consumption, leading to larger electricity bills. Huawei's software systems, compared with Nvidia's Cuda, require more maintenance from experienced engineers, resulting in operational manpower costs three to five times larger. Still, given China's abundance of power and engineers, CloudMatrix was a viable solution for clients, especially when they were cut off from Nvidia's most advanced technology, said people with knowledge of the sales. CloudMatrix 384 sells for about Rmb60mn ($8.2mn) a set, and the exact price depends on the individual contract, according to industry insiders. This compares with about $3mn for Nvidia's NVL72, according to analyst estimates. Nvidia said it had range of prices depending on original equipment manufacturer and customer specifications.

China's Huawei develops new AI chip, seeking to match Nvidia, WSJ reports

Huawei's annual report released Monday is the first high-profile corporate event CFO Meng Wanzhou has led since returning to China from Canada after a nearly three-year extradition battle with the U.S. China's Huawei Technologies is preparing to test its newest and most powerful artificial-intelligence processor, hoping to replace some higher-end products of U.S. chip giant Nvidia, The Wall Street Journal reported on Sunday. Huawei has approached some Chinese tech companies about testing the technical feasibility of the new chip, called the Ascend 910D, the report said, citing people familiar with the matter. The Chinese company hopes that the latest iteration of its Ascend AI processors will be more powerful than Nvidia's H100, and is slated to receive the first batch of samples of the processor as early as late May, the report added. Reuters reported on Monday that Huawei plans to begin mass shipments of its advanced 910C artificial intelligence chip to Chinese customers as early as next month. Huawei and its Chinese peers have struggled for years to match Nvidia in building top-end chips that could compete with the U.S. firm's products for training models, a process where data is fed to algorithms to help them learn to make accurate decisions. Seeking to limit China's technological development, particularly advances for its military, Washington has cut China off from Nvidia's most advanced AI products, including its flagship B200 chip. The H100 chip, for example, was banned from sale in China in 2022 by U.S. authorities before it was even launched. Nvidia declined to comment while Huawei did not immediately respond to a Reuters request for comment.

China's Huawei develops new AI chip in bid to match US' Nvidia

The new chip by Huawei is known as the Ascend 910D, and some Chinese companies have already discussed the prospect of testing the technical feasibility of this new chip. According to Huawei, the first batch of the Ascend AI processors is due to be received by the end of May. The Chinese company also believes that the latest iteration of this chip has greater power compared to the powerful Nvidia H100 chip. The information regarding the same was revealed by a report in the Wall Street Journal. Elsewhere, Reuters has also reported that Huawei is already planning to make its advanced 910C artificial intelligence chip available for Chinese customers as early as next month. When Huawei introduced its first Ascend 910 processor in 2019, it boasted 256 TeraFLOPS of FP16 performance -- a major milestone at the time. In just six years, the company has advanced through several chip generations, with the Ascend 910C now delivering around 60 percent of Nvidia's H100 inference performance, according to independent research.

Nvidia takes a $5.5 billion hit from new US Chinese restrictions as Huawei charges ahead with Ascend 920

On April 9, 2025, the United States announced plans to further tighten restrictions on AI chip exports to China, including Nvidia's H20 processor, a reduced-performance chip which the company created to comply with earlier US export regulations while continuing sales in China. Huawei, which has been positioning itself as China's answer to Nvidia for some time, was likely waiting for the announcement because just one day later, at a partner conference, it revealed the Ascend 920, its next-generation AI chip. Set to enter mass production in the second half of 2025, according to DigiTimes Asia, the chip is expected to be built on SMIC's 6nm process and offer up to 900 TFLOPs of BF16 compute and 4000GB/s of memory bandwidth, supported by HBM3 memory modules. It will also support PCIe 5.0 and next-generation interconnect protocols to aid large-model training. With the Nvidia H20 now restricted in China, industry analysts believe Huawei's new chip could bridge the gap. Although real-world benchmarks are not yet available, the Ascend 920's specifications suggest it could be an effective alternative to Nvidia's H20 and may be welcomed by Chinese companies like Tencent and ByteDance, which will now require substitutes for the restricted chip. While the current Ascend 910C is estimated to deliver about 60% of the Nvidia H100's inference performance, the Ascend 920 reportedly improves training efficiency by 30% to 40% and is tailored for Transformer and Mixture of Experts models. Nvidia had been making strong sales in China through the H20, with sales reportedly growing 50% quarter over quarter before the ban. The new license requirement from the U.S. Department of Commerce effectively halts those sales, and Nvidia is expected to write off $5.5 billion in lost business as a result. Huawei also announced its AI CloudMatrix 384 Supernode solution at the same event. This rack-scale platform, described as a 'Nuclear-level product', reportedly exceeds the performance of Nvidia's GB200 but consumes more power, something that is not seen as a major concern in China compared to the West.

Nvidia faces a new threat from Huawei

Chinese tech giant Huawei is getting ready to test powerful, new AI chips that could rival those made by Nvidia (NVDA), according to a new report. Huawei Technologies will receive its first shipment of Ascend 910E chips from manufacturers as soon as the end of May, the Wall Street Journal reported Monday, citing people familiar with the matter. The processor is Huawei's most powerful AI semiconductor to date. According to the report, Huawei is hopeful that the chips will be more powerful than Nvidia's H100 AI training chip, which it released in 2022. The Shenzhen-based firm boosts the chip's performance by packing in more silicon. Shares of Nvidia were down about 3.5% by late Monday morning. The chip is in the early stages of development and will need to undergo testing with an initial batch of customers to measure its performance, the sources said. Huawei, one of China's biggest tech companies, has made persistent technological advances in recent years despite U.S. sanctions against it. The firm has been on a U.S.-trade blacklist for six years, and the U.S. restricts chipmakers from selling certain chip technologies to Chinese firms in an effort to curb the country's advancements with AI chip technology. The tightening restrictions under both the Biden and Trump administrations have dealt blows to Nvidia by limiting its potential market. Nvidia designed its H20 chip, in particular, to comply with U.S. export rules -- but those rules became even stricter and barred the Santa Clara, California-based company from selling them in China. Beijing has slammed the U.S.' approach and President Donald Trump's attempts to pressure other countries to cut their own trade with China. Earlier this month, China's foreign ministry said it firmly opposes any trade agreements between the U.S. and third-party countries "at the expense of China," framing the moves as aggressive rather than defensive. Nvidia is the world's most valuable chipmaker with a market capitalization of about $2.6 trillion. But its shares are down 22.5% this year in the face of Trump's escalating trade war with China.

Huawei to Test New Ascend 910D Chip Amid NVIDIA Crisis | AIM Media House

Huawei seeks to replace some of NVIDIA's high-end processors, promoting self-sufficiency. Huawei is preparing to test its new AI chip, the Ascend 910D, in China by reaching out to various tech companies, The Wall Street Journal reported. The move comes as Huawei seeks to replace some of NVIDIA's high-end processors following Washington's tightening of semiconductor export restrictions to China. The Ascend 910D is set for initial sample delivery by late May, and Huawei has already approached several Chinese tech companies to assess the chip's technical feasibility. The tests will determine if the new chip can match or outperform NVIDIA's H100, a key processor for AI development. Huawei's efforts underline Beijing's push for a self-sufficient semiconductor industry. This comes shortly after reports claiming that Huawei is preparing to ship its Ascend 910C AI chips amid US restrictions. The company's chip development remains in its early stages and will require a series of technical evaluations before it can be deployed to customers. The new chip is part of Huawei's broader strategy to fortify China's AI and semiconductor industries after being placed on a US trade blacklist nearly six years ago. The company has already shipped more than 8,00,000 units of its Ascend 910B and 910C chips to clients this year. This includes state-owned telecommunications carriers and private AI developers such as ByteDance, the Chinese tech company that owns TikTok. Washington's recent move to restrict sales of NVIDIA's H20 chip has created opportunities for domestic competitors. NVIDIA also announced in an exchange filing that the US government has potentially charged it $5.5 billion for exporting H20 AI chips to China, one of its key markets, without a license. Despite manufacturing difficulties, Chinese firms, including Huawei, have been able to develop AI chips comparable to those of NVIDIA, although there is a performance lag of several years. Facing challenges such as limited access to TSMC and restricted availability of high-end components, Huawei has shifted its focus toward building systems that connect multiple chips.

Can Huawei's AI chip could shake up Nvidia's dominance?

Huawei Technologies is set to test its newest artificial-intelligence processor, the Ascend 910D, in a bid to rival Nvidia's high-end products, according to an exclusive The Wall Street Journal article. The development underscores the resilience of China's semiconductor industry despite U.S. efforts to restrict its access to Western chip-making equipment. The Ascend 910D is expected to be more powerful than Nvidia's H100 chip, released in 2022, said one of the people. Huawei has approached some Chinese tech companies to test the chip's technical feasibility and is slated to receive the first batch of samples as early as late May. The company has previously developed the 910B and 910C versions of its Ascend AI processors. Huawei's advancements in AI chips are part of Beijing's efforts to foster a self-sufficient semiconductor industry. The company has emerged as a champion in this field, developing substitutes for Nvidia's AI chips. This year, Huawei is poised to ship over 800,000 Ascend 910B and 910C chips to customers, including state-owned telecommunications carriers and private AI developers like ByteDance, the parent company of TikTok. Some buyers have already expressed interest in increasing their orders of the 910C following the U.S. restrictions on Nvidia's H20 chip sales in China. Nvidia announced it would take a $5.5 billion charge as a result of these restrictions. The restrictions present an opportunity for Huawei and other Chinese rivals like Cambricon Technologies to gain ground. Despite manufacturing challenges, Huawei has managed to deliver some products comparable to Nvidia's chips, albeit with a lag. The company faces hurdles in producing chips at scale due to being cut off from Taiwan Semiconductor Manufacturing, the world's largest chip foundry, and restrictions on accessing advanced chip-making equipment and key components like high-bandwidth memory units. Nvidia's NeMo tools aim to fix weak AI returns for businesses In response, Huawei has focused on building more efficient and faster systems to leverage its chips. In April, the company introduced the CloudMatrix 384, a computing system connecting 384 Ascend 910C chips, which some analysts deemed more powerful than Nvidia's flagship rack system under certain circumstances. Industry practitioners note that connecting multiple chips in a system requires stable networks, software, and engineering to prevent network failures. Research firm SemiAnalysis commented that having more Ascend chips could offset their individual performance differences compared to Nvidia's Blackwell chips, and that power deficiencies, while relevant, are not a limiting factor in China.

China's Huawei Develops New AI Chip, Seeking to Match Nvidia, WSJ Reports

Washington has cut China off from Nvidia's most advanced AI products China's Huawei Technologies is preparing to test its newest and most powerful artificial-intelligence processor, hoping to replace some higher-end products of US chip giant Nvidia, the Wall Street Journal reported on Sunday. Huawei has approached some Chinese tech companies about testing the technical feasibility of the new chip, called the Ascend 910D, the report said, citing people familiar with the matter. The Chinese company hopes that the latest iteration of its Ascend AI processors will be more powerful than Nvidia's H100, and is slated to receive the first batch of samples of the processor as early as late May, the report added. Reuters reported on Monday that Huawei plans to begin mass shipments of its advanced 910C artificial intelligence chip to Chinese customers as early as next month. Huawei and its Chinese peers have struggled for years to match Nvidia in building top-end chips that could compete with the US firm's products for training models, a process where data is fed to algorithms to help them learn to make accurate decisions. Seeking to limit China's technological development, particularly advances for its military, Washington has cut China off from Nvidia's most advanced AI products, including its flagship B200 chip. The H100 chip, for example, was banned from sale in China in 2022 by US authorities before it was even launched. Nvidia declined to comment while Huawei did not immediately respond to a Reuters request for comment. © Thomson Reuters 2025

Nvidia Stock Drops on Report Huawei Is Developing Rival AI Chip

According to The Wall Street Journal, Huawei "is gearing up to test its newest and most powerful artificial-intelligence processor, which the company hopes could replace some higher-end products" from Nvidia. Citing people familiar with the matter, the Journal said that "Huawei has approached some Chinese tech companies about testing the technical feasibility of the new chip, called the Ascend 910D." Shares of Nvidia, which declined to comment on the report, were down close to 4% in recent trading. They've lost a fifth of their value since the start of the year, and have yet to fully recover from their plunge on Jan. 27 that wiped nearly $600 billion from the company's market cap when Chinese startup DeepSeek said its models rivaled those of OpenAI's Chat GPT at a fraction of the cost. Earlier this month, Nvidia said it is expecting to record a $5.5 billion first-quarter charge after the U.S. limited exports of its H20 chips to China.

Watch These Nvidia Price Levels as Stock Slips on News of Chinese Rival's AI Chip

Nvidia (NVDA) shares fell on Monday to snap a four-day winning streak following news that China's Huawei Technologies is developing a rival AI chip. The Wall Street Journal reported Monday that the Chinese company hopes the new chip could replace some of Nvidia's high performance products, adding that it has approached several Chinese tech companies about testing the technical feasibility of the chip. Nvidia shares are up about 25% from their early-April low but have lost around a fifth of their value since the start of the year as of Monday's close. In recent months the AI favorite's stock has come under pressure due to concerns over significantly cheaper AI technology coming out of China and a federal crackdown on the export of the company's popular H20 chips to China. Below, we take a closer look at Nvidia's chart and apply technical analysis to identify key price levels worth watching out for. Nvidia shares continue to oscillate within a falling wedge after a bear trap emerged on the chart earlier this month, a trading event that lures investors to sell upon a breach of major support -- the pattern's lower trendline in this case -- before the price makes a sudden move higher. More recently, the price has pushed up against the pattern's upper trendline, potentially paving the way for a bullish breakout. Meanwhile, the relative strength index (RSI) has crossed back above the 50 threshold, indicating improving price momentum. Let's identify two key overhead areas on Nvidia's chart that could come into play and also locate crucial support levels worth monitoring. A breakout above the falling wedge pattern's upper trendline could initially see the shares test the $115 level. This area may provide overhead resistance near the April swing high, a location that also aligns with several retracements on the chart stretching back to last September. Buying above this area may trigger a move up to around $130. Investors who have bought shares at lower prices could look for exit points in this region near last year's prominent August peak and December trough. Interestingly, this location also sits just below a bars pattern projected upside target that takes the stock's move higher following a prior bear trap on the chart and overlays it from this month's low. A move lower could lead to a retest of support at $96. Investors may look for buying opportunities at this level near last week's swing low and two notable peaks that formed on the chart in March last year. Finally, a decisive breakdown below the falling wedge pattern's lower trendline could see Nvidia shares revisit lower support around $87. This area on the chart may provide support near the bear trap low and lines up with a range of price action between March and May last year. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Nvidia stock drops as Huawei unveils new AI chip amid US export ban; will Huawei's Ascend 910D AI chip outperform Nvidia's H100

Nvidia's shares fell 2% in Monday's early trading after a report said that Huawei would be launching a new, and advanced AI chip, as per Yahoo Finance. Huawei's move comes after the US government banned Nvidia's chip sales to China amid the rising trade war between both nations. According to a Wall Street Journal report, Huawei is creating a new AI chip named the Ascend 910D that it believes will surpass Nvidia's H100 chips in performance. The new chips are successors to Huawei's 910B and 910C chips and are currently in the early stages of development, as per the report. The firm has already contacted a few Chinese technology companies to test the chips, reported Wall Street Journal. Huawei will also deliver more than 800,000 units of the previous 910B and 910C models to clients, including state-owned telecom operators and AI developers like ByteDance, the owner of TikTok, as per the report. The timing of the announcement could not be more unfortunate for Nvidia. The chipmaker had recently reported that it would suffer a $5.5 billion loss following the US export ban on its H20 AI chips, designed for the Chinese market, as per Yahoo Finance. The analysts at JPMorgan estimate that the ban has the potential to cut Nvidia's revenue by as much as $16 billion this year alone, according to the report. Nvidia's China business is a substantial portion of its revenue stream, DA Davidson analyst Gil Luria estimated that about 40% of Nvidia's revenue comes from China due to chip smuggling, reported Yahoo Finance. While, analysts at Bernstein had reported that China accounted for $17 billion, or 13%, of Nvidia's revenue in its fiscal year 2025, as per Yahoo Finance. Nvidia stock has fallen more than 17% this year, as it suffered from investor scrutiny over AI spending from Big Tech giants and US president Donald Trump's trade war, according to the report. The US government said it has launched an investigation into Nvidia over the use of its AI chips in China, as per the report. Why did Nvidia's stock fall on Monday? Nvidia's stock fell by 2% after news broke that Huawei is developing a new AI chip, the Ascend 910D, which could surpass Nvidia's current top chip, the H100, as per Yahoo Finance. How will the US export ban affect Nvidia? The US export ban prevents Nvidia from selling its H20 AI chips to China, which is expected to cost the company $5.5 billion in losses, as per Yahoo Finance. Analysts predict the ban could reduce Nvidia's total revenue by up to $16 billion this year.

Nvidia plans to redesign AI chips to navigate US export curbs: Report

Nvidia had earlier said the revised export rules would significantly affect its operations, estimating a potential revenue hit of up to $5.5 billion. Despite the setback, the company is exploring ways to retain its presence in China while remaining within the bounds of US regulations.Nvidia is planning to modify the design of its artificial intelligence (AI) chips to comply with tightened US export restrictions, The Information has reported. According to the report, the chipmaker has informed major Chinese clients, including Alibaba Group, TikTok-parent ByteDance and Tencent Holdings, about its plans. The discussions took place during CEO Jensen Huang's mid-April visit to Beijing, the report said, citing three people familiar with the matter. Huang's visit came just days after the US government imposed fresh restrictions on the export of advanced AI chips to China. The new rules target Nvidia's H20 chip, which the company had developed to meet earlier US regulatory requirements. The H20 is now also restricted under the updated norms, as it still offers computing power considered too advanced. The US government has said the move is intended to prevent China's military from accessing cutting-edge AI capabilities. Nvidia had earlier said the revised export rules would significantly affect its operations, estimating a potential revenue hit of up to $5.5 billion. Despite the setback, the company is exploring ways to retain its presence in China while remaining within the bounds of US regulations. Nvidia has told customers that samples of a redesigned chip could be available as early as June. It is also developing a China-specific version of its latest-generation AI chip, Blackwell, the report said.

Nvidia Stock Is Sliding Monday Morning: What's Going On? - NVIDIA (NASDAQ:NVDA)

NVIDIA Corp NVDA shares are trading lower Monday. Reports from the weekend indicated that China's Huawei Technologies has developed an AI chip to directly challenge Nvidia. What To Know: Huawei has developed a new AI processor called Ascend 910D that it hopes will be a replacement for some higher-end chips made by Nvidia, the Wall Street Journal reported on Sunday. People familiar with the matter said Huawei already approached some Chinese technology companies with intentions of testing the technical practicability of the new chip. Development of the chip is still in the early stages, but the company could reportedly receive its first sample batches by late May. This latest version of the company's Ascend AI processor is expected to be more powerful than Nvidia's H100. The news comes after Nvidia said in a regulatory filing earlier this month that the U.S. government informed the company that it will need a license to export certain chips to China, focused on the company's H20 chips. A license will also be required for any other circuits achieving the H20's memory bandwidth, interconnect bandwidth, or a combination thereof, Nvidia said in the filing. Check This Out: Chamath Palihapitiya Says Nvidia Is Huawei's 'New Target' -- A 'National Champion' That Crushed Tech Giants With A 'Low-End Disruptor' Strategy As a result of the restrictions, Nvidia said it expects its first-quarter financial results to include up to $5.5 billion of charges associated with H20 products held in inventory. Nvidia's fiscal first quarter ended on Sunday and the company is due to report financial results for the period next month. Analysts currently expect the chipmaker to report earnings of 88 cents per share and revenue of $43.09 billion, according to estimates from Benzinga Pro. Huawei's new chip is the latest version of its Ascend processor, with previous versions being called 910B and 910C. The report indicates that the Chinese chipmaker is expected to ship more than 800,000 Ascend 910B and 910C chips to customers this year. Some buyers are also reportedly in talks to increase orders following the chip restrictions from the Trump administration. NVDA Price Action: Nvidia shares were down 0.96% at $109.94 at the time of publication Monday, according to Benzinga Pro. Read Next: If You Invested $10K In Nvidia Stock 10 Years Ago, How Much Would You Have Now? Photo: Hepha1st0s/Shutterstock. NVDANVIDIA Corp$109.92-0.98%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum63.64Growth94.83Quality97.45Value7.28Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Analyst Warns Of Major Nvidia Setback in China As Huawei Advances AI Chip: 'It's Pretty Much Game Over For Nvidia in China' - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Brian Colello, Morningstar's equity strategist, expressed a bearish outlook on Nvidia's China business, while maintaining a positive view on its prospects in developed markets. What Happened: Colello suggested that Huawei's competitive threat is a significant obstacle for Nvidia, especially in China. He stated, "I think it's pretty much game over for Nvidia in China." Colello, while speaking to Yahoo Finance pointed out that U.S. restrictions, including the ban on Nvidia's H20 chip, have hindered Nvidia's ability to sell high-performance chips in China. Nvidia has reportedly recorded a $5.5 billion write-off tied to its China business, with further details expected in its earnings report later in May. Colello believes Nvidia's operations in China have steadily deteriorated, calling the H20 ban "the final straw" of Nvidia being able to sell anything halfway decent into China. Colello also expects Huawei's products to be higher quality than Nvidia's H20 chips. While Nvidia faces challenges in China, Colello remains optimistic about the company's short-term prospects in developed markets like Europe and the U.S., highlighting strong demand from hyperscalers like Google GOOG GOOGL and Microsoft MSFT. He is confident that U.S. companies will not slowdown their AI investments even if there is a potential recession in the future. SEE ALSO: Elon Musk Says Will Come As A 'Surprise To Most' As China's Economy Surpasses US And EU Amid Rising Tariffs And Growing Recession Fears Why It Matters: Huawei has begun testing its new AI chip, the Ascend 910D, which is designed to rival Nvidia's flagship processors. This move comes even as U.S. sanctions continue to stifle China's semiconductor ambitions. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Furthermore, the Trump administration is reportedly considering significant changes to Biden-era restrictions on AI chip exports. These changes could further tighten access to Nvidia's H100 chips. These developments could potentially impact Nvidia's market position in China and its overall growth. While Huawei's current offerings don't yet signal Chinese superiority in AI, Colello noted that China's rapid progress -- exemplified by Huawei and models like DeepSeek -- raises concerns about its ability to catch up faster than anticipated. However, strategist Colello remains confident in U.S. tech dominance with Nvidia continuing to lead in innovation. Colello also pointed to projects like Stargate to highlight the significant investment opportunities in U.S. AI infrastructure. He named Nvidia as one of Morningstar's top picks, emphasizing its limited vulnerability to new tariffs and its dominant position in the AI sector. Benzinga's Edge Rankings highlight strong momentum and growth rankings for Nvidia in the 64th and 95th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks. READ MORE: JPMorgan CEO Jamie Dimon Warns Recession Is Best-Case Outcome Of Trump Trade War Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. GOOGAlphabet Inc$161.98-0.05%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum46.45Growth64.28Quality90.82Value52.28Price TrendShortMediumLongOverviewGOOGLAlphabet Inc$160.00-0.10%MSFTMicrosoft Corp$394.04-%NVDANVIDIA Corp$107.30-1.58%Market News and Data brought to you by Benzinga APIs

Huawei Starts Delivering Its CloudMatrix 384 AI Clusters To Chinese Customers; Costs Three Times Higher Than NVIDIA's GB200 NVL72 System

Huawei's CloudMatrix 384 AI cluster has started to see adoption from Chinese tech giants, who are reportedly impressed by the server's capabilities relative to NVIDIA's offerings. Well, it seems like Huawei won't stop when it comes to expanding its AI computing portfolio and capitalizing on NVIDIA's vulnerable position in China, as the firm has stepped up its development process. We recently disclosed how Huawei had prepared the CloudMatrix 384 AI cluster, which is said to be entirely developed through in-house products, and gave performance that would likely give NVIDIA a tough time competing in the domestic market. Now, the Financial Times reports that ten different clients have adopted the CloudMatrix 384 AI server, signaling a massive breakthrough for Huawei's AI ambitions. It is claimed that Chinese tech giants have already integrated the AI cluster into their data center portfolio, and while the names of customers haven't been disclosed yet, it has been revealed that they are primary customers of Huawei's product offerings. We did cover CloudMatrix 384 extensively in the past, but for a quick summary, it is said that Huawei's solution successfully competes with NVIDIA's most powerful AI server, the GB200 NVL72, showing that China no longer depends on anyone else for its computational needs. Regarding specifications, the CloudMatrix 384 (CM384) AI cluster features 384 Ascend 910C chips connected in an "all-to-all topology" configuration. Interestingly, Huawei has managed to cover the architectural flaws by housing five times as many Ascend chips as NVIDIA's GB200. A CloudMatrix cluster is said to deliver 300 PetaFLOPS of BF16 computing, almost two times higher than GB200 NVL72. However, the only drawback here is the power CloudMatrix 384 is expected to consume, which is said to be 3.9x the power of a GB200 NVL72 and somewhat "awful" perf/watt figures across AI workloads. Interesting, the price of a single CloudMatrix 384 AI cluster is said to be $8 million, which is almost three times higher than NVIDIA's GB200 NVL72 configuration, so the key motive behind Huawei's product is not to provide a cost-effective performance, rather a product that is made through in-house resources and is capable enough to compete with Western alternatives.

Huawei's New AI Cluster Takes On Nvidia, But At A Higher Cost Following Sanctions - NVIDIA (NASDAQ:NVDA)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. Huawei Technologies has started delivering its advanced artificial intelligence chip "cluster" to Chinese clients, who ramped up orders after Washington's semiconductor sanctions cut them off from Nvidia Corp's NVDA sophisticated technology. The erstwhile Chinese smartphone giant has sold over 10 sets of CloudMatrix 384, which fuses a large sum of chips, the Financial Times reported Wednesday, citing unnamed sources familiar with the matter. Nvidia stock is trading lower on Wednesday. Also Read: Nvidia Powers Next-Gen Adaptive Digital AI Agents For Cisco, Nasdaq, And Meta Dylan Patel of SemiAnalysis told the Financial Times that Huawei's CloudMatrix 384 development signifies that China now has an AI system capable of beating Nvidia. Nvidia projected a $5.5 billion earnings hit after President Donald Trump mandated a license to sell H20 chips to China. Huawei claimed its CloudMatrix outperformed Nvidia's NVL72 AI cluster, which consists of 72 of its GB200 chips, the Financial Times cited from a company presentation. CloudMatrix 384 uses Huawei's Ascend 910C chips, which underperform Nvidia's GB200 processors. However, Huawei has used a larger quantity of chips connected by its "super node." However, CloudMatrix 384 has several disadvantages compared to Nvidia, industry experts told Financial Times. CloudMatrix 384 has much higher energy consumption due to the higher number of chips, and Huawei's software systems require more maintenance from experienced engineers, entailing higher costs than Nvidia. CloudMatrix 384 sells for about 60 million Chinese yuan ($8.2 million), a set compared to $3 million for Nvidia's NVL72. BofA Securities analyst Vivek Arya had highlighted growing concerns that AI data center buildouts might peak in 2025 and then considerably slow down afterward. However, he also expects that capex from non-CSPs, including emerging cloud vendors, enterprises, and national AI infrastructure projects, could be an additional source of sustaining AI investments. Arya's top AI picks were Nvidia and Broadcom Inc AVGO, respective merchant and custom AI silicon leaders. Price Action: NVDA stock is down 1.23% at $107.68 at the last check Wednesday. Read Next: Intel Ramps Up New Chip Tech To Take On Taiwan Semiconductor's Global Lead Photo via Shutterstock NVDANVIDIA Corp$107.21-1.66%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum59.23Growth94.79Quality97.52Value7.31Price TrendShortMediumLongOverviewAVGOBroadcom Inc$190.61-0.29%Market News and Data brought to you by Benzinga APIs

NVIDIA Is Reportedly Developing New Chips For China; Will Likely Introduce The Blackwell AI Products Into The Markets As Soon as June

Well, it seems like NVIDIA is now ready to make desperate attempts to ensure that the firm's position in China remains strong, as Team Green is working on new chips. When it comes to NVIDIA-China relations, they have been a victim of US export regulations for quite some time now, and the constant revisions by the US government have made it difficult for NVIDIA to maintain its position in Chinese markets. The Trump administration recently banned the export of the H20 AI accelerator to China, which shook up NVIDIA, considering that the H20 was the company's "best-selling" product in Chinese markets. Now, as an alternative, The Information reports that NVIDIA has told Chinese partners about developing a new solution for the markets. It is claimed that NVIDIA has notified partners such as Alibaba, ByteDance, and Tencent about its decision to stay consistent with China. It is reported that NVIDIA plans to introduce a solution around its Blackwell GPU lineup, so an upgrade from the H20, which features the Hopper generation. We may be looking at stripped-down versions of the B100 and B200 AI chips, coming under a new naming scheme. What NVIDIA does here is to capitalize on the architectural upgrades to provide more performance to Chinese customers while complying with US regulations. This news comes after NVIDIA's CEO rushed to China after the H20 ban, assuring the region that the firm will continue its 30-year-long commitments. This makes it clear that NVIDIA cannot leave its Chinese customers alone, and that by introducing US-compliant solutions for almost the fourth time now, Team Green plans to play on both sides. China is an important market for NVIDIA, given that just this year alone, the firm sold over $12 billion of their H20 AI accelerators, before the export restrictions came in. It will be interesting to see how the situation pans out for NVIDIA in China, especially since competition in the domestic market is ramping up with firms like Huawei introducing solutions rapidly, which pose a huge threat to Team Green's market presence.

Huawei Will See Massive Demand For Its AI Chips Globally If NVIDIA Continues To See Pressure From US Export Policies, Claims CEO Jensen Huang

Huawei's mounting competition is now bothering NVIDIA, as Jensen fears that US export regulations would significantly undermine Team Green's market position. With the US-China geopolitical tensions kicking in, both nations are engaged in what we call the "AI war", where there's a race for AI models and cutting-edge hardware capabilities. With the US implementing harsh export regulations on NVIDIA, Huawei has managed to figure out a way to capitalize on the opportunity by significantly ramping up its AI product offerings, and this has apparently bothered NVIDIA's CEO, who has raised Huawei's growing capabilities in a closed-door meeting with the U.S. House of Representatives Foreign Affairs Committee. If DeepSeek R1 had been trained on (Huawei chips) or a future open-source Chinese model had been trained to be highly optimized to Huawei chips, that would risk creating a global market demand for Huawei chips. - NVIDIA via Reuters There's no doubt in the fact that under US policies, Huawei and China have massively upscaled their AI capabilities. A prime example of this is Huawei's Ascend AI chips, which have managed to compete with NVIDIA's in-demand offerings such as the Hopper H100 and H20 AI accelerators. The Chinese firm has started to see adoption from tech giants like ByteDance and Tencent, and this doesn't look to stop now, as the firm has plans to unveil newer generations pretty soon that will likely feature far more capable performance. Judging by this, NVIDIA will have fewer cards to play if competition mounts up at its current pace. Interestingly, Huawei unveiled its first cutting-edge AI cluster recently, the CloudMatrix 384, which features the Ascend 910B chip, and has performance comparable to NVIDIA's "Blackwell" GB200 NVL72 systems. Despite the fact that it comes at three times the cost, the cluster shows that the generational gap between Huawei and NVIDIA has significantly scaled down, which is what NVIDIA's CEO has warned the US lawmakers about. It remains uncertain whether NVIDIA could see any "legal relaxation." The next big obstacle Team Green is set to face is the "AI Diffusion" rule, which will hinder the firm's presence in global markets. Under the Trump administration, NVIDIA saw its H20 AI chip banned, and based on what we are seeing, the firm has a tough road ahead.

Nvidia Reportedly Designing New AI Chips For Alibaba, ByteDance, Tencent After Jensen Huang-Led Company Warned US Export Ban On H20 Could Cost $5.5 Billion - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA is reportedly developing redesigned artificial intelligence chips for major Chinese tech firms after warning that tightened U.S. export restrictions on its H20 chip could lead to multibillion-dollar losses. What Happened: Nvidia has informed key Chinese customers -- including Alibaba Group BABA, ByteDance and Tencent Holdings TCEHY -- that it is working on new AI chip designs tailored to comply with U.S. export regulations, reported Reuters, citing The Information on Friday. Nvidia CEO Jensen Huang discussed the new plans with customers during a mid-April trip to Beijing, the report noted, citing three people involved in the conversation. This was shortly after the company disclosed that the export restrictions could result in a $5.5 billion revenue hit. A prototype of the redesigned chip could be ready as early as June, the report said. Additionally, Nvidia is said to be developing a China-specific version of its Blackwell AI chip. See Also: Elon Musk Says Will Come As A 'Surprise To Most' As China's Economy Surpasses US And EU Amid Rising Tariffs And Growing Recession Fears Why It's Important: Earlier this week, Brian Colello, equity strategist at Morningstar, voiced a pessimistic view of Nvidia's business outlook in China but remained optimistic about the company's performance in developed markets. Colello pointed to rising competition from Huawei as a major challenge, saying, "I think it's pretty much game over for Nvidia in China." Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started On Thursday, Nvidia CEO Jensen Huang told U.S. lawmakers that restrictions on exporting AI chips could be giving China's Huawei Technologies an edge in the global race for AI dominance. On the same day, Nvidia also took aim at AI startup Anthropic for advocating stricter U.S. export controls on AI chips to China. Price Action: On Friday, Nvidia shares climbed 2.59%, ending the day at $114.50, according to Benzinga Pro. Benzinga Edge Stock Rankings awarded Nvidia an impressive growth score of 94.84%. Click here to compare it with other leading tech firms like Alibaba and Tencent. Read Next: JPMorgan CEO Jamie Dimon Warns Recession Is Best-Case Outcome Of Trump Trade War Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: epha1st0s/Shutterstock BABAAlibaba Group Holding Ltd$125.704.29%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum92.73Growth73.07Quality56.29Value80.34Price TrendShortMediumLongOverviewNVDANVIDIA Corp$114.222.34%TCEHYTencent Holdings Ltd$63.954.22%Got Questions? AskWhich Chinese tech firms to watch for growth?How will Nvidia's new chips impact competitors?What stocks might benefit from AI chip innovation?Could Alibaba leverage Nvidia's new designs?What opportunities arise from Huawei's market challenges?How might US export restrictions reshape the market?What investments could thrive amid AI competition?Is Tencent positioned for success with Nvidia?Which AI startups could emerge as winners here?How will market dynamics change with new AI chips?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia Gets Hit by China Threat. Time to Buy the Dip? | The Motley Fool

Shares of Nvidia (NVDA -2.02%) were pulling back today as investors responded to a new threat facing the AI superstar. Just weeks after the company disclosed a write-off of as much as $5.5 billion due to new rules preventing exports of its H20 chips that were specifically designed for China, Nvidia now appears to be facing new competition out of China as Chinese tech giant Huawei is reportedly set to launch a new AI chip. As a result, Nvidia stock was down 2.6% as of 3:21 p.m. ET. The tech race between the U.S. and China continues to heat up as The Wall Street Journal reported on Monday that Huawei is aiming to test it new AI chip known as the Ascend 910D, which it hopes will be more powerful than Nvidia's H100s, the prized graphics processing unit (GPU) that has driven the artificial intelligence (AI) revolution. According to the report, Huawei plans to ship more than 800,000 of the new chips to customers, including state-owned telecoms and ByteDance, the parent of TikTok. The U.S. and China are involved in something of a cold war as the federal government has restricted exports to China and put pressure on allies to do the same. In turn, the U.S. is also seeking to restrict the use of China-owned technology, such as TikTok and DeepSeek in the country. Given the relationship and the general perception of China, the reach of Huawei's AI chip could be limited to just China. Meanwhile, Nvidia seems to be losing its China business following the Trump administration's new restriction, so the threat from Huawei may be less than what it seems. However, there are concerns that a substantial percentage of Nvidia's business comes from its chips being illegally smuggled into China. It's also worth remembering that Nvidia continues to improve its own technology. At a price-to-earnings ratio of 37, the stock looks very reasonably valued. Taking advantage of the dip here should pay off over the long run.

Did Huawei Just Say "Checkmate" to Nvidia? | The Motley Fool

Privately held Chinese tech conglomerate Huawei is reportedly building a new chip to rival Nvidia (NVDA 2.39%), which has long been considered the world's dominant artificial intelligence (AI) chipmaker. However, export regulations dating back to 2022 have gradually curbed Nvidia's ability to sell its products to Chinese companies. Recently, the Trump administration informed Nvidia that it would need an export license to continue sending the chips it had been selling to China, effectively introducing another big road block for Nvidia in the Chinese market. Nvidia will take a big charge in the quarter due to the license requirements and, in the near term, doing business in China is going to be a significant challenge, potentially presenting an opportunity for a domestic Chinese company to fill the void. Did Huawei just say "checkmate" to Nvidia? The Wall Street Journal reported that Huawei is working on a product called the 910D chip, which the company is still testing. Huawei is supposedly preparing to send the chips out to several Chinese companies later this month. The chip is intended to rival Nvidia's H100 Hopper chip, which is not the most advanced Nvidia chip, but certainly one of the more recent iterations. Hopper offers features such as faster AI training, real-time deep learning inference, high-performance computing, and accelerated data analytics. Due to export restrictions that began during the Biden administration and continued to escalate in the Trump administration, Nvidia built a modified H100 chip called H20, which was less powerful than the H100 chips and specifically built to comply with export restrictions so it could be sold in China. Both the current and recent administrations have been concerned about how China might use the AI chips. But despite efforts to stymie China's AI capabilities, the Chinese company DeepSeek developed a chatbot with similar capabilities to OpenAI's ChatGPT, supposedly using Nvidia's H800 chips. The H800 chips were one of the earlier chips Nvidia created to comply with some of the first Chinese export restrictions before those got banned due to new export restrictions. The H800 has more computing power than the H20, but less than the H100. So, if Huawei's 910D can truly rival Nvidia's H100 chip, that would give Chinese companies access to more powerful chips than they have been buying from Nvidia in recent years. Right now, it doesn't seem like Huawei can compete with Nvidia's offerings. That doesn't mean Chinese AI companies like DeepSeek won't find ways to innovate with less, but Huawei's 910D chips will be hard-pressed to compete with the H100. The Journal reported that the 910D chips use more power and are less efficient than the H100 chips. Richard Windsor, the founder of the research firm Radio Free Mobile, said in a research note that Huawei's chips are likely to stay limited in size to 7 nanometers. The trend in chips is to go smaller because smaller chips use less power, have better performance, and can pack more transistors onto a smaller surface area, typically leading to more processing power. Nvidia's H100 chip is only 4 nanometers. "The net result is that I don't think that Huawei is going to be competing directly with Nvidia, and so concerns over substantial market-share loss are overblown, in my opinion," Windsor wrote. Finally, the H100 is now considered an old model for Nvidia. The company already released its next-generation Blackwell chips, reporting overwhelming demand for the product earlier this year. Additionally, Nvidia is already planning to release new chip models in 2026 and 2028. So, I don't think Huawei's new chip is checkmate for Nvidia. However, Huawei will have increased opportunities in China as long as these export restrictions stay in place, and China is a huge market for any tech or AI company.

Top Tech News: NVIDIA AI Chip, Volt14 Raising Funds & More

Nvidia is redesigning its AI chips to comply with U.S. export restrictions on China. According to The Information, the company has informed major Chinese clients -- including ByteDance, Alibaba, and Tencent -- of the changes. CEO Jensen Huang personally delivered the message during a mid-April visit to Beijing, according to the report. The move follows the U.S. government's decision to add Nvidia's H20 chip -- the most advanced model allowed for sale in China -- to its export control list, effectively banning its distribution. Sources say Nvidia has told Chinese customers that all future downgraded chip models will require U.S. Department of Commerce approval prior to export. The first samples could be available as early as June.

Huawei delivers advanced AI chip cluster to China clients after Nvidia curbs - FT By Investing.com

Investing.com-- Huawei has started delivering its advanced artificial intelligence (AI) chip "cluster", CloudMatrix 384, to Chinese customers seeking alternatives to Nvidia (NASDAQ:NVDA) amid tightening U.S. export restrictions, the Financial Times reported on Wednesday, citing people with knowledge of the matter The Chinese tech giant has sold more than 10 sets of these systems, which link Huawei's 384 Ascend 910C processors to boost computing power, the report said. Early recipients include data centers serving Chinese technology firms, the FT reported. CloudMatrix 384 is positioned as a domestic replacement for Nvidia's NVL72 cluster, which is widely used by US tech giants, and consists of 72 of its GB200 chips, the report said. Earlier this month, Washington placed Nvidia's H20 chip -- the most advanced it could sell in China without a license -- on its restricted export list. Nvidia said the move would lead to a $5.5 billion charge in the first quarter. Huawei claims its system offers 67% higher compute performance and over three times the memory capacity, according to an internal presentation seen by the FT. Despite performance advantages, CloudMatrix consumes significantly more power and requires greater operational manpower, the report said. Still, Huawei's offering is gaining traction as Chinese firms seek alternatives to U.S. chips, it added.

Nvidia Vs. Huawei: Can the Chinese Giant Catch Up With the AI Chip Leader?

Although Huawei first gained global recognition as a smartphone maker, the chip designer is evolving into a foundational technology pillar for China. Much like Intel (NASDAQ:INTC) is a strategic asset for the US, Huawei Technologies (HWT.UL) is broadening its mandate across semiconductors, AI, telecommunications, and ultimately, ensuring China's self-reliance amid stiff US export controls. With DeepSeek, China has already demonstrated it can upset the AI stock arena. According to the Wall Street Journal's sources, a deeper disruption could be underway with Huawei's new AI chip Ascend 910D. Purportedly, the D version is set to outperform Nvidia's H100 chips, the series that trained most of today's large language models (LLMs). Previously, we covered that 14% of Nvidia's (NASDAQ:NVDA) revenue comes from China, and likely up to 33% if Singapore is included as a transshipment point. With Huawei's latest push, could Nvidia find itself in a situation similar to Tesla (NASDAQ:TSLA) against Chinese BYD? Current Ranking of AI Chips At present, Nvidia's flagship B200 chip, built on Blackwell architecture, has no match in terms of performance. With that being said, it also matters how chips are deployed. Case in point, Hewlett-Packard Enterprise's El Capitan currently ranks as the world's fastest supercomputer, employing AMD's EPYC and Instinct MI300A accelerators. But owing to Nvidia's full stack approach that integrates hardware, networking, and software, the company's products became go-to solutions for AI workloads in data centers. In the first wave of the AI hype, Nvidia mostly sold A100 accelerators (Ampere architecture) to hyperscalers such as Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL), followed by H100s (Hopper architecture). This all changed in October 2022 when the U.S. Commerce Department implemented export controls for both the A100 and H100 series. Less than a year later, Nvidia nerfed both into A800 and H800 to continue its China sales. DeepSeek R1 leveraged H800 for training (pre-deployment) combined with Huawei's Ascend 910C chip for inferencing (post-deployment). According to the DeepSeek team, the Ascend 910C gives approximately 60% performance of H100, built with a 7nm node process. For comparison, both Hopper and Blackwell accelerators are built with TSMC's 4nm process, enabling greater transistor density for more computational power. Just on time for even stricter export control, Huawei's Ascend 910C chips are purportedly set for mass volume production this May. In the next phase of AI scaling, Ascend 910D is still not competing with Nvidia's H200 or B200, but is sandwiched between H100 and H200. Is China's AI Chip Self-Reliance Inevitable? China still has trouble with the mass deployment of AI chips at scale. To deploy Ascend 910C, which combines two Ascend 910B dies, Huawei had to erect a number of shell companies to fool TSMC (NYSE: TSM) into manufacturing them, which was first exposed by The Information. It is clear that China is in the intermediary period where large smuggling networks are needed to neutralize the Commerce Department's chip restrictions. Long-term, however, China created its own AI industrial complex by combining the efforts of Huawei as chip designer, SMIC as chip manufacturer, and CXMT/XMT as high-bandwidth memory (HBM) manufacturer. According to the Center for Strategic & International Studies (CSIS), it also appears that China stockpiled over a year's worth of HBM supply. In other words, China has to build up its own ecosystem of cutting-edge chip companies. The US relies on its hegemonic power to control Taiwan's TSMC as well as South Korea's SK Hynix for HBM needs. And all three chip designers, Nvidia, AMD (NASDAQ:AMD), and Intel, are headquartered in California. As both Intel and TSMC work on deploying chips using the 2nm node process this year, China is still one generation behind, looking to launch 5nm tech instead. Of course, the US also has leverage against Dutch ASML Holding (AS:ASML), which makes it difficult for China to deploy the most advanced chip-making equipment. Yet, a recent report from William Huo suggests that China's SMIC can deploy 5nm chips regardless. Based on these trends of China's advance, it is reasonable to assume that any export chip controls against China will be neutralized by 2030. In the meantime, China can use its 90% hold on rare minerals refining, used in delicate electronics, as a powerful leverage. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Nvidia stock rises on China chip strategy By Investing.com

Investing.com -- NVIDIA Corporation (NASDAQ: NASDAQ:NVDA) shares rose 3% as the tech sector continued its recovery, bolstered by capital expenditure announcements from Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT), and fresh reports indicating Nvidia's ongoing efforts to adapt its chip designs for the Chinese market in the wake of U.S. export restrictions. The company's stock movement follows a report from The Information detailing Nvidia's communication with major Chinese clients such as ByteDance, Alibaba (NYSE:BABA) Group, and Tencent (HK:0700) Holdings (OTC:TCEHY). Nvidia is reportedly altering the design of its artificial intelligence chips to comply with U.S. export laws, as stated by sources familiar with the matter. Nvidia's CEO, Jensen Huang, informed customers of the company's plans during a recent visit to Beijing, which occurred shortly after the U.S. government expanded its list of AI chips requiring approval for sale to China. This expansion included the H20, Nvidia's most advanced AI chip previously permissible for export to China. This regulatory change has led to an anticipated $5.5 billion write-down for the quarter ending April, which initially prompted a decline in Nvidia's stock price. The strategic pivot to comply with export regulations and maintain its presence in the Chinese market appears to have reassured investors, contributing to the stock's uplift.

Nvidia is working on China-tailored chips again after US export ban, The Information reports

(Reuters) - Nvidia has told some of its biggest Chinese customers that it is tweaking the design of its artificial intelligence chips so they can be sold to Chinese businesses without clashing with U.S. export rules, The Information reported on Friday. The chip giant has spoken with customers, including Alibaba Group, TikTok-parent ByteDance and Tencent Holdings, the report said, citing three people involved in the conversations. Nvidia CEO Jensen Huang alerted customers about his plans while on his trip to Beijing, according to the report. Huang's Beijing trip in mid-April came days after the U.S. government limited exports of its H20 AI chips to China. The export curbs on the primary chip Nvidia was legally permitted to sell in China would result in charges of $5.5 billion for the company, it had then said. Nvidia has told customers that a sample of the new chip will be available as soon as June, The Information reported. The company also said it was still working on a China-specific version of its latest-generation AI chip, Blackwell, according to the report. Nvidia declined to comment on the report. ByteDance, Alibaba, Tencent and the U.S. Commerce Department did not immediately respond to Reuters' requests for comment. The sale of Nvidia's advanced AI chips to China -- a key market for the company -- has been a contentious topic, with U.S. officials moving to restrict the flow of the most powerful chips to China to keep ahead in the AI race. Following those restrictions, the company began designing chips tailored for China that would come as close as possible to U.S. limits. (Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar)