The flattening prices highlight the challenges Nvidia’s China business encounters in the wake of U.S. sanctions on AI chip exports and increased competition.
Huawei Chip Outsells Nvidia Amidst US Sanctions
*There have been reports of the H20 processors being offered at a discount of more than 10% compared to Huawei’s Ascend 910B, the most powerful artificial intelligence chip produced by a Chinese company. In some key metrics, the Ascend 910B chip outperforms the H20, according to the sources.
I have a feeling NVDA will have a hard time gaining any traction in China until the Chinese government and US government can come together. Xi Ping told Chinese companies to buy Chinese chips. So that is a huge hurdle.
Andy
So long as Nvidia is prevented from selling its best chips in China (for fear of use for military purposes) Nvidia sales there are likely to be restricted. Nvidas effort to develop best possible chips for China within legal limits is admirable. Limited sales is not a surprise.
And we fully expect China to be investing in chip research intended to out perform Nvidia. Ie the rules may create a strong competitor. The chips race could become an arms race.
I wonder just how much the United States can stop China from getting chips. I mean we are selling to Singapore, Italy, Japan, etc… It will be hard to keep them away from China.
Andy
Saul has extended thread on Nvidia and asks if new chips will make old data centers obsolete.
Meanwhile I’ m thinking people are still running Cobal programs. If it serves the purpose why change?
The market will fall on Tuesday.
As in sell in May and go away. End of tech stock earnings for a few months. Have to play with finance, retail, oil? So boring!!
Don’t ya love an old axiom where you go away before the bottom?
Be careful not to go away before the top!!