Nvidia stock apparently down as ‘new Huawei AI chip’ report takes lea
Nvidia is seeing a significant drop in its stock after the ‘new Huawei AI chip’ reports took over the internet. It seems the U.S. chipmaker is going through a really tough time, following the new chip controls and the Chinese tech giant’s constant efforts.
The “stock fall” of Nvidia started when it announced plans to restrict the flow of H20 chips in China due to the newest U.S. chip regulations. As per the latest rules, the chipmaker now requires a license worth $5.5 billion to export its Chinese SoCs.
Although a complete restriction on H20 chipsets will directly shave up to $16 billion from Nvidia’s revenue this year, says JP Morgan analyst. The news has already driven down Nvidia’s stock as it said to comply with the US rules in all respects.
Even though the company was up by 25% from their early-April low, it lost around one-fifth of its value since the “new Huawei AI chip in the making” and “Ascend 910C mass shipment” reports started hovering on the internet.
As of now, the U.S. company’s stock fell by 2% on Monday after the next-gen Ascend 910D hit the surface. Inputs reveal that Huawei is preparing another powerful AI processor named Ascend 910D to fill the void of H20 chips in China.
Simply put, Nvidia’s stock is under pressure not only because of the new U.S. chip controls but also as Huawei is rising in the Chinese AI chip game.
Jensen Huang, the CEO of Nvidia, has flagged Huawei as its major rival in the AI industry. He says that the Chinese OEM is rising in the AI field every year.
Huang also added that foreign restrictions on China are indirectly giving way to Huawei. While these rules are simply hurting the U.S. companies, they are making Huawei more innovative and independent in almost every aspect.
The rise of Huawei in the AI chip segment is not only dropping Nvidia stock but also becoming a challenge for the company’s revenue, as China is one of the largest markets for it. Huawei is currently working on two chips: Ascend 910C and 910D. It would be worth seeing how the company progresses in this race in the time ahead.
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Nvidia stock apparently down as ‘new Huawei AI chip’ report takes lead, source
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