Nvidia shares dropped more than 3% after reports said Huawei is ready to start mass shipping its new 910C AI chip to Chinese customers as early as next month.
This comes just a week after the U.S. banned the export of Nvidia’s advanced H20 AI chip to China. The ban has made it harder for Chinese companies to buy high-end AI chips from American firms like Nvidia.
Huawei is now stepping in with its 910C chip, which is designed to support AI tasks. Experts say it could be a strong local option and may help Chinese companies avoid U.S. export rules.
With Huawei quickly moving in, Nvidia could lose a big part of its market in China. This is seen as a major move in the ongoing tech battle between the U.S. and China, especially in the AI space.
If Huawei’s chip performs well, it could change the future of AI development in China—and that’s bad news for Nvidia.
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