Nvidia cuts China prices in Huawei chip fight
Nvidia's most advanced AI chip it developed for the China market has got off to a weak start, with abundant supply forcing it to be priced below a rival chip from Chinese tech giant Huawei, according to sources familiar with the matter.
The flattening prices underscore the challenges Nvidia's China business faces amid U.S. sanctions on AI chip exports and heightened competition, casting a cloud over its future in a market that contributed 17% to its revenue for fiscal 2024.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisitIIT DelhiCertificate Programme in Data Science & Machine LearningVisitThe growing competitive pressure in China also adds a cautionary note to investors in the U.S. semiconductor designer as its shares extended a stunning rally following Wednesday's bumper revenue forecast.
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-110405572»>
Nvidia, which dominates the market for artificial intelligence (AI) chips, introduced three chips tailored for China late last year after U.S. sanctions prevented it from exporting its most advanced semiconductors.
Among those chips, the H20 is the most closely watched as it's the most powerful Nvidia product sold in China, but the three supply chain sources told Reuters there is an abundant supply of the chip in the market, signalling weak demand.
That has seen H20 chips being sold in some cases at an over 10% discount to Huawei's Ascend 910B — the most powerful AI chip from a
