Everything seemed to go right for Nvidia (NVDA -2.02%) last year. The chip designer saw enormous demand for its new Blackwell architecture and reported record levels of revenue and profit -- and investors rushed to buy the stock.
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.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares were down 3.5% on Monday afternoon after news that China's Huawei Technologies is preparing to test a new high-end artificial intelligence chip aimed at rivalling Nvidia's flagship products. Huawei is preparing to sample its Ascend 910D AI chip in May, aiming to match or outperform Nvidia's H100, according to reports.
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Nvidia Corp. (NASDAQ: NVDA) is struggling because many of its chips cannot be sold in China.
Huawei has approached some Chinese tech companies about testing a new chip, called the Ascend 910D, which it hopes will be more powerful than Nvidia's H100, The Wall Street Journal reported.
Nvidia (NVDA 4.11%) has been one of the biggest winners of the artificial intelligence (AI) boom so far. The tech giant designs the world's most powerful chip -- a graphics processing unit (GPU) -- and it's become the star player in the AI buildout.
The AI boom remains intact, with strong demand from major players like Amazon and Google, despite concerns over data center leases. Nvidia's large inventory charge for Chinese-specific H20 GPUs is seen as unnecessary, with potential for export licenses still in play. The AI GPU company's revenue guidance for FQ1 is $43 billion, with a history of smashing analyst estimates on the line, due to the Chinese export issue.
Nvidia (NASDAQ: NVDA) is up over 18,000% in the last 10 years. It is one of the best-performing stocks in the world during that time and is now the third-largest company in the world by market capitalization.
Superpower rivalry over semiconductors heats up despite Washington's attempts to block Beijing.
Since the beginning of 2023, Nvidia (NVDA 4.30%) has added more than $2.2 trillion to its market capitalization on the back of the artificial intelligence (AI) boom. Demand is through the roof for the company's graphics processing units (GPUs) for the data center, which are the gold standard for developing AI models.
Nvidia (NVDA 4.11%) has been taking a beating so far this year. Shares have plunged nearly 30% year to date as of this writing.