Huawei Technologies is set to begin testing its most advanced artificial intelligence chip yet, a move that could allow the Chinese tech giant to replace some of Nvidia’s (NASDAQ: NVDA) top-tier products, according to a Wall Street Journal report on Sunday, citing sources familiar with the plans.
The new processor, called the Ascend 910D, is expected to be available for sampling by late May, the report noted.
Following the news, Nvidia’s shares dipped nearly 1% in pre-market trading on Monday and -2.05% at the end of the session.
Huawei has reached out to Chinese technology firms to evaluate the chip’s performance, aiming to build a domestic alternative to Nvidia’s H100 chip, which is widely used in AI development, the Journal reported.
Despite nearly six years under U.S. trade restrictions, Huawei has made significant progress in its semiconductor capabilities, most notably demonstrated with the launch of its Mate 60 smartphone in 2023.
The company’s foray into AI hardware comes as the U.S. tightens export controls, further limiting Nvidia’s ability to sell products in China.
Earlier this month, Washington added Nvidia’s H20 chip—the most advanced model the company could sell in China without a license—to its restricted export list. Nvidia warned the move would result in a $5.5 billion charge for the first quarter.
Meanwhile, Huawei is expanding shipments of its earlier AI chips, the 910B and 910C, and is constructing large-scale computing systems designed to enhance their performance, according to the WSJ.
