Nvidia (NVDA) inventory fell as a lot as 2% in early buying and selling Monday following a report that Chinese tech giant Huawei is readying a new advanced AI chip within the wake of President Trump’s export ban on Nvidia chips to China.
As of 10:32:49 AM EDT. Market Open.
The Wall Road Journal reported Monday, citing unnamed sources, that Huawei has approached some Chinese language tech corporations about testing a brand new AI chip referred to as the Ascend 910D, which it hopes might be extra highly effective than Nvidia’s H100 AI chips. The 910D chips are successors to Huawei’s 910B and 910C chips and are nonetheless in an early stage of growth.
The Wall Road Journal additionally mentioned Huawei is about to ship greater than 800,000 Ascend 910B and 910C chips to prospects, together with state-owned telecommunications carriers and AI builders equivalent to TikTok father or mother ByteDance.
Read more about Nvidias stock moves and today’s market action.
Nvidia stock spiraled after the chipmaker disclosed in a regulatory filing this month that the US authorities had successfully banned exports of its H20 chips made particularly for the Chinese language market to adjust to ever-tightening US commerce guidelines. The corporate mentioned it could document a $5.5 billion loss from the coverage change, with JPMorgan analysts estimating the ban would shave up to $16 billion from Nvidia’s revenue this 12 months.
China accounted for $17 billion, or 13%, of Nvidia’s income in its fiscal 12 months 2025, Bernstein famous earlier this month. DA Davidson analyst Gil Luria estimates that share could possibly be increased, telling Yahoo Finance in an e-mail that as a lot as 40% of Nvidia’s income comes from China attributable to chip smuggling.
Nvidia stock dropped last week after Reuters reported that Huawei’s 910C chips are set to start delivery as quickly as Might and are reportedly aggressive with Nvidia’s H100 chips. These Nvidia chips had been banned from sale to China in 2022 and are two iterations behind Nvidia’s newest Blackwell chips.
Nvidia inventory is down greater than 17% in 2025, because the main AI chip inventory has suffered from investor scrutiny over AI spending from Huge Tech giants and Trump’s trade war.
Earlier this month, the US government said it is probing Nvidia over the usage of its AI chips in China.
In the meantime, CEO Jensen Huang visited China and met with trade officials. The corporate is concurrently trying to broaden its home manufacturing footprint, pledging $500 billion to the US AI supply chain buildout.
Laura Bratton is a reporter for Yahoo Finance. Comply with her on Bluesky @laurabratton.bsky.social. E mail her at laura.bratton@yahooinc.com.
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