Nvidia's China AI Chip Faces Competition

Weak Start for Nvidia's H100

Nvidia's most advanced AI chip, the H100, has had a weak start in the Chinese market, according to a Reuters report in July. The chip, which was introduced last year, is facing competition from Huawei Technologies Co's latest AI chip, the Ascend 910B.

Huawei's Ascend 910B Gains Market Share

Huawei's Ascend 910B has been well-received by Chinese customers, and Nvidia is now taking pre-orders for a new China-specific AI chip that would be compatible with current US export restrictions. The new chip is expected to be priced on par with the Ascend 910B.

Nvidia Faces Challenges in China

Nvidia is facing a number of challenges in the Chinese market, including the US-China trade war and the rise of domestic Chinese competitors. The company is also working on a version of its new flagship AI chips for the China market that would be compatible with current US export restrictions.

Nvidia's stock is back on an upward trajectory ahead of its second-quarter earnings report at the end of the month.