On April 28, 2025, Nvidia’s stock experienced a decline following reports that Huawei is preparing to test its latest artificial intelligence processor, the Ascend 910D. This development is seen as a strategic move by Huawei to offer a domestic alternative to Nvidia’s high-end AI chips, particularly in the Chinese market.
According to sources cited by The Wall Street Journal, Huawei has approached several Chinese tech companies to assess the technical feasibility of the Ascend 910D, aiming for it to potentially replace some of Nvidia’s products. The first batch of samples is expected to be available by late May.
In response to these reports, Nvidia’s shares fell nearly 4% on Monday, leading declines on the Dow and S&P 500. This adds to the company’s challenges, as it has already seen a 20% drop in its share value this year.
The introduction of the Ascend 910D underscores the intensifying competition in the AI chip market, especially as U.S. export restrictions limit Nvidia’s ability to sell its most advanced chips, like the H100, to China. Huawei’s move could signal a significant shift in the dynamics of the global AI hardware industry.
