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Why Nvidia investors shouldn’t worry about Huawei’s new AI chip

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The Ratings Game

An analyst notes that Huawei’s new chip isn’t likely to hold much appeal outside of China

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Chinese tech giant Huawei is reportedly ready to test a new artificial-intelligence chip to compete with Nvidia — but the U.S. chipmaker shouldn’t be too concerned, according to one analyst.

Huawei is looking to test its Ascend 910D chip with fellow homegrown tech companies and is expected to get its first samples of the chips next month, the Wall Street Journal reported, citing unnamed people described as familiar with the matter. The Chinese company, which was added to the U.S. Entity List in 2019, reportedly is aiming to take on Nvidia Corp.’s NVDA H100 chips, which are used to train some of the world’s most powerful AI models. Nvidia cannot sell its H100 chips to Chinese companies under U.S. restrictions.

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