Did Huawei Just Say "Checkmate" to Nvidia?
Privately held Chinese tech conglomerate Huawei is reportedly building a new chip to rival Nvidia (NASDAQ: NVDA), which has long been considered the world's dominant artificial intelligence (AI) chipmaker.However, export regulations dating back to 2022 have gradually curbed Nvidia's ability to sell its products to Chinese companies. Recently, the Trump administration informed Nvidia that it would need an export license to continue sending the chips it had been selling to China, effectively introducing another big road block for Nvidia in the Chinese market.Nvidia will take a big charge in the quarter due to the license requirements and, in the near term, doing business in China is going to be a significant challenge, potentially presenting an opportunity for a domestic Chinese company to fill the void. Did Huawei just say "checkmate" to Nvidia?Continue reading
Privately held Chinese tech conglomerate Huawei is reportedly building a new chip to rival Nvidia (NASDAQ: NVDA), which has long been considered the world's dominant artificial intelligence (AI) chipmaker.
However, export regulations dating back to 2022 have gradually curbed Nvidia's ability to sell its products to Chinese companies. Recently, the Trump administration informed Nvidia that it would need an export license to continue sending the chips it had been selling to China, effectively introducing another big road block for Nvidia in the Chinese market.
Nvidia will take a big charge in the quarter due to the license requirements and, in the near term, doing business in China is going to be a significant challenge, potentially presenting an opportunity for a domestic Chinese company to fill the void. Did Huawei just say "checkmate" to Nvidia?
