huawei challenges nvidia with new ai chip amid us export restrictions

2025-04-23 nvidia

Shenzhen, Wednesday, 23 April 2025.
huawei is poised to begin mass shipments of its 910c ai chip to chinese customers next month. this move directly challenges nvidia’s market dominance in china, especially given potential new u.s. export restrictions. the 910c, while not a revolutionary breakthrough, combines two 910b chips and is considered comparable to nvidia’s h100. priced initially around $28,000, the 910c presents a politically stable domestic alternative for chinese firms, potentially reshaping the ai hardware landscape.

Nvidia’s stock and market position

The news of huawei’s 910c chip directly impacts nvidia (nvda:nasdaq) [1]. nvidia’s stock experienced a downturn, with shares falling 4.51% to $96.91 [4]. jim cramer of cnbc noted that nvidia’s investment appeal has diminished due to u.s. export restrictions that could trigger a $5.5 billion fallout [7]. these restrictions, requiring export licenses for h20 chip sales to china, are pushing chinese firms towards domestic alternatives like huawei’s 910c [1][4][7].

revenue and competitive challenges

Nvidia anticipates a potential $5.5 billion revenue hit due to these restrictions [4]. the u.s. government’s actions are perceived by some u.s. chipmakers as ceding china’s ai market to huawei [7]. analysts at albright stonebridge group suggest that with nvidia’s sales limited, huawei’s ascend 910c will become the preferred hardware for chinese companies developing ai models [3]. this shift could significantly erode nvidia’s market share and revenue streams in china [1][3].

broader market dynamics and geopolitical factors

The situation is further complicated by broader geopolitical tensions and trade dynamics [7]. donald trump’s attacks on federal reserve chair jerome powell led to a downturn on wall street, impacting major indexes [7]. china is also employing behind-the-scenes trade barriers, such as blocking u.s. exports, adding complexity to the ai chip competition [7]. moreover, tsmc is under u.s. investigation for potentially violating export controls [7]. the u.s. department of commerce is scrutinizing tsmc’s dealings with chinese firms, potentially leading to penalties exceeding $1 billion [7].

Bronnen

AI Chip China Market