Nvidia shares are falling 5% in today's trading, a harsh blow on a day when Trump's pressure on the Fed is being negatively received. However, Nvidia shares face another threat: Huawei's new chip shipment.
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While Nvidia's stock fell sharply last week after Trump imposed new restrictions on exports of its H20 chip to China, the impact is not over yet. Today, some media reported a large delivery of Huawei's 910C AI chips to Chinese companies next month. If true, it would demonstrate that Chinese companies are not willing to slow down their AI push due to the restrictions on Nvidia. Furthermore, while Nvidia's chips remain the most advanced, the impossibility of shipping next-generation systems will make competition with other GPU designers in China more difficult, and their efficiency will be more easily achieved. In fact, Huawei's 910C chips compete with Nvidia's H100 chips, which have been banned from export to China since 2022.
Nvidia looks for alternatives
Meanwhile, Nvidia CEO Jensen Huang has met with Japan's Prime Minister and suggested that the country should allocate more power generation to meet the demand for artificial intelligence, as well as build new infrastructure.
Nvidia shares are already down 30% so far in 2025, largely due to fears that AI investments from big companies as Meta, Alphabet or Microsoft could come in the next years.
Source: xStation5
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