Nvidia stock falls as China's Huawei reportedly readies AI chip after Trump's export ban
Nvidia (NVDA) stock fell as much as 2% in early trading Monday following a report that Chinese tech giant Huawei is readying another advanced AI chip in the wake of President Trump's export ban on Nvidia chips to China.
The Wall Street Journal reported Monday, citing unnamed sources, that Huawei has approached some Chinese tech companies about testing a new AI chip called the Ascend 910D, which it hopes will be more powerful than than Nvidia's H100 AI chips. The 910D chips are successors to Huawei's 910B and 910C chips and are still in an early stage of development.
The Journal also said that Huawei is set to ship more than 800,000 Ascend 910B and 910C chips to customers including state-owned telecommunications carriers and AI developers including TikTok parent ByteDance.
Nvidia stock spiraled after the chipmaker disclosed in a regulatory filing this month that the US government had effectively banned exports of its H20 chips made specifically for the Chinese market to comply with ever-tightening US trade rules. The company said it would record a $5.5 billion loss from the change in policy, with JPMorgan analysts estimating the ban would shave up to $16 billion off of Nvidia's revenue this year.
China accounted for $17 billion, or 13%, of Nvidia's revenue in its fiscal year 2025, Bernstein noted earlier this month. DA Davidson analyst Gil Luria estimates that share could be higher, telling Yahoo Finance in an email that as much as 40% of Nvidia's revenue comes from China due to chip smuggling.
Nvidia shares dropped last week after Reuters reported that Huawei's 910C chips are set to begin shipping as soon as May and are reportedly competitive with Nvidia's H100 chips. Those Nvidia chips were banned from sale to China in 2022 and are two iterations behind Nvidia's latest Blackwell chips.
Nvidia shares are down more than 17% in 2025, as the leading AI chip stock has suffered from investor scrutiny over AI spending from Big Tech giants and Trump's trade war.
Earlier this month, the US government said it is probing Nvidia over use of its AI chips in China.
Meanwhile, CEO Jensen Huang visited China and met with trade officials, and the company is simultaneously looking to expand its domestic manufacturing footprint, pledging $500 billion to the US AI supply chain buildout.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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