Stock Market: Nvidia Faces a New Chinese Competitor in the AI Chip Market

The Chinese tech giant Huawei is about to launch a new AI chip, the Ascend 910C, which could rival Nvidia’s H100. This announcement comes amid a backdrop of trade tensions between China and the United States and could shake up the strategic AI semiconductor market.

Huawei Challenges Nvidia on Its Own Turf

Huawei is preparing for the imminent launch of its Ascend 910C AI chip, aiming to directly compete with the Nvidia H100. According to the Wall Street Journal, several Chinese companies are already testing this new component, whose performance is said to be comparable to that of the American giant.

This technological advancement occurs in a challenging context for Huawei. The company has been facing U.S. sanctions for several years, limiting its access to advanced semiconductors.

The launch of the Ascend 910C could therefore mark a turning point in its strategy, allowing it to partially free itself from dependence on foreign technologies.

However, Nvidia still holds a considerable lead in the global AI market. Its market capitalization recently reached $2.68 trillion.

The company also plans to deliver more than a million of its new H2O chips to Chinese customers, thanks to a design that cleverly circumvents U.S. restrictions.

A Major Geopolitical Issue

The launch of this chip by Huawei is part of a broader context of a race for technological supremacy between China and the United States. Recent restrictions imposed by Washington on the export of advanced AI chips to China have pushed Beijing to accelerate the development of its own capabilities.

This technological rivalry also carries political implications. Jensen Huang, the CEO of Nvidia, recently proposed organizing a debate on AI between Donald Trump and Kamala Harris as part of the U.S. presidential campaign. 

In this turbulent context, NVDA stock was up 4.78% to $114.23 on Nasdaq today.

In summary, the upcoming battle between Nvidia and Huawei in the field of AI promises to be intense. The rise of Huawei as a serious competitor to Nvidia in the AI chip market could shake up the industry.