Huawei’s 910C storms in as Nvidia retreats. A new AI chip era begins.
In a dramatic twist in the ongoing tech cold war, China’s Huawei Technologies has stepped up to fill the AI chip void left by Nvidia’s forced retreat from Chinese markets. According to Reuters, Nvidia’s (NVDA) stock took a notable hit Monday as Huawei announced it would begin mass shipments next month for its alternative to Nvidia’s now-banned H20 processor.
The new chip, the Ascend 910C, has already started reaching select customers and is not lightweight. According to reports, Huawei’s 910C matches the performance of Nvidia’s once-mighty H100 chip, cleverly achieving this by integrating two 910B processors into a single powerhouse package.
This move came after the U.S. government, under tightened export controls, informed Nvidia that it would require a special license to sell the H20 to China and other restricted regions. Facing near-zero approval odds, Nvidia is bracing for a painful write-off of up to $5.5 billion this quarter.
And it’s not just Nvidia feeling the sting. Advanced Micro Devices (AMD), Nvidia’s primary U.S. competitor, faces a similar ban on its MI308 AI chips, with losses projected up to $800 million. The U.S. aimed to hit China where it hurts, but it seems Huawei was ready to punch back.
Nvidia Stock Stumbles as Huawei Rises
The stock market’s reaction was swift. Nvidia shares slid 4.5% to $96.91, while AMD stock dipped 2.2% to $85.56. Investors clearly smelled trouble brewing as the East-West tech rivalry intensified.
Huawei isn’t stopping at the 910C. Later this year, it plans to unleash the Ascend 920, rumored to rival Nvidia’s H20 — and built entirely within China’s borders. Though doubts linger, manufacturing muscle comes from China’s Semiconductor Manufacturing International Corp. (SMIC).
“Can SMIC really meet China’s massive AI appetite?” asks Wedbush Securities analyst Matt Bryson. He notes that SMIC still faces challenges with advanced semiconductor yields. However, if those hurdles are overcome — and U.S. restrictions remain firm — Huawei could permanently block Nvidia from reclaiming its Chinese stronghold.
The Bigger Picture: A Technological Redrawing of Borders
Huawei’s ambitions don’t end with closing the gap. Sources say the Chinese giant is preparing a next-gen chip, the Ascend 910D, aiming to leapfrog even the H100 in performance. The first batch of 910D samples could land in Chinese labs as early as late May—a timeline that must have Nvidia executives on edge.
For years, Chinese firms lagged behind Nvidia’s top-tier AI processors, especially in model training — the lifeblood of modern artificial intelligence. With Washington slamming the export gates shut, Huawei is seizing its shot at glory.
Nvidia, silent on the developments, refused to comment. Huawei, equally tight-lipped, didn’t immediately respond to requests either — but their actions are louder than any press release.
If Huawei’s bets pay off, the global AI chip race won’t longer be about performance. It will be about technological sovereignty — and who gets to write the future of AI.
