Opportunity to buy NVIDIA at a low point has appeared! Is Huawei's development of the 910D chip a Favourable Information in competition with Nvidia?

Huawei ( is developing artificial intelligence chips that can compete with Nvidia's ) H100, ticker symbol NVDA( on Nasdaq. Upon hearing the news, Nvidia's stock not only did not fall, but instead saw a slight pump. The Motley Fool analysts suggest that now may be an opportunity for investors to buy on the dip, as Nvidia's stock price has now reached $109, a significant improvement compared to the big dump to $94.31 earlier this month. Trump's suspension of tariff sanctions against China has restored investor confidence in the US artificial intelligence industry.

A few weeks ago, due to Trump's new policy that strictly prohibits the export of H20 chips designed specifically for China, Nvidia canceled orders worth up to $5.5 billion. According to a recent report by The Wall Street Journal, Chinese tech giant Huawei is set to launch its own self-developed AI chips to compete with Nvidia, intensifying the AI competition between China and the United States.

Huawei develops Ascend 910D chip to compete with Nvidia H100

According to a report by The Wall Street Journal on Monday, Huawei is testing a new artificial intelligence chip called Ascend 910D, hoping that this chip can be stronger than Nvidia's H100s GPU. The report states that Huawei plans to ship 800,000 new chips to customers including state-owned telecom companies and TikTok's parent company ByteDance.

Will Nvidia's business and revenue shrink significantly?

Due to the U.S. federal government's restrictions on exporting advanced AI chips to Huawei and pressuring allies to adopt the same anti-China policies, Nvidia canceled orders worth $5.5 billion, resulting in a big dump of stocks at the beginning of the month. The U.S. has also restricted Chinese tech companies like TikTok and DeepSeek from operating in the U.S. market, leading the U.S. and China into a new cold war era.

However, the scope of Huawei's artificial intelligence chips is limited to China, and NVIDIA's loss of business in China does not seem particularly serious. Analysts are generally optimistic about the future performance of AI development in the United States, and NVIDIA can vigorously develop in the domestic market, but some believe that a lot of NVIDIA's business comes from chips being smuggled to China illegally, although the quantity of these illegal smuggled goods has never been officially recorded.

Wall Street financial analyst views

The Motley Fool analysts believe that with Nvidia's price-to-earnings ratio at 37, the stock's valuation is very reasonable, and there is an opportunity for returns by entering during this fall. Morning Star Equity's strategy analyst Brian Klo believes that Nvidia's H100 chip is banned from export, and Nvidia's market in China is already Game Over. Under the influence of geopolitical policies, the AI chips developed by Huawei may technically surpass Nvidia, and they also have support from the Chinese government. However, Nvidia does not actually need to care about the Chinese market and can focus on the US domestic market, Europe, and other overseas countries in the future. This article is purely a market observation and not any investment advice.

This article mentions the timing to buy Nvidia on dips! Is Huawei developing the 910D chip to compete with Nvidia actually a positive? First appeared in Chain News ABMedia.