Latest news with #Cambricon
Yahoo
6 days ago
- Business
- Yahoo
China Just Put Nvidia on Notice -- And It Could Reshape the AI Chip War
Last week, Chinese internet regulators summoned Nvidia (NASDAQ:NVDA) over its older H20 chips, flagging vague security risks amid rising tensions over US plans to embed location-tracking in AI semiconductors. While no ban was issued, analysts say it's less about H20 and more about messaging. Beijing is signaling that it won't accept hardware backdoors and it's using Nvidia to make that point. Nvidia responded swiftly: No back doors. No spyware. No kill switches. At the same time, US officials confirmed they're exploring software and hardware solutions for chip traceability, though they haven't had direct talks with Nvidia or AMD yet. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Behind the scenes, the stakes are mounting. Washington wants tighter export control enforcement, while Beijing wants leverage and H20 chips offer both sides a bargaining chip. US lawmakers remain split: some want to tighten restrictions, others see room for compromise. Trump's team says a broader deal with China is very close, with rare-earth access already on the table. Still, Chinese state media called the H20 castrated, implying the US reversed course not to appease Beijing, but because China's domestic AI chipmakers are catching up. Meanwhile, Chinese chip stocks like SMIC and Cambricon popped after the Nvidia news, as investors bet on accelerated local substitution. Analysts believe China could now use Nvidia as a pressure valve to demand more supply assurances, or to speed up its push for tech self-sufficiency. Whether the US presses ahead with the Chip Security Act remains to be seen. But with a fall summit looming, and AI supremacy on the line, this fight is far from over. This article first appeared on GuruFocus.
Yahoo
04-08-2025
- Business
- Yahoo
NVDA: Nvidia Red-Hot Chips Reignite in China Amid Share-Loss Warning
Aug 4 - Nvidia Corp. (NASDAQ:NVDA) in late July secured a green light to resume H20 AI-chip sales in China, but analysts see its local market share slipping. After U.S. export rules halted H20 shipments in April, Nvidia clinched assurances for a fully compliant China-only chip and a path to reintroduce its flagship H20 lineup. Yet Bernstein forecasts Nvidia's share of China's AI-chip market will fall to 54% in 2025, down from 66% a year earlier. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Local rivals such as Huawei and Cambricon built momentum while H20 access paused, winning more clients with homegrown designs. Beijing's recent summons of Nvidia over security concerns hints at fresh regulatory hurdles, even as Washington frames chip-policy rollbacks as trade leverage. Nvidia CEO Jensen Huang argued that easing controls preserves U.S. tech leadership, and some experts predict a sliding scale of restrictions ahead. Performance is also being increased by their own chipmakers in China who are also building connections with AI developers within China and are straining legacy suppliers. Even though H20s would be brought back to Chinese data-centers, Nvidia has a stiffer battle to regain lost territory. A combination of diplomatic negotiations and new export mechanisms are hoped by the company and its proponents to delay the further wearing away. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Nvidia in the Crosshairs: China Just Escalated the AI Chip War
Nvidia (NASDAQ:NVDA) just hit another speed bump in China. Days after the U.S. rolled back export restrictions on its H20 chipdesigned specifically to comply with sanctionsChinese regulators summoned Nvidia to address alleged serious security vulnerabilities. The Cyberspace Administration of China (CAC) raised concerns tied to U.S. lawmakers' comments suggesting these chips may carry location-tracking or shutdown features. The agency demanded internal documentation and clarification from Nvidia's local team. No official details were shared beyond that, but investors are watching closely. The stock gained 2.5% on Germany's Tradegate, supported in part by strong earnings from Microsoft and Meta, but this probe introduces fresh uncertainty. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The timing couldn't be more delicate. CEO Jensen Huang had just wrapped up a high-profile China visit, spotlighting local champions like DeepSeek and Tencent while calling China a global AI powerhouse. Meanwhile, U.S. officials had been framing the H20 green light as a goodwill gesturehoping it would unlock better access to China's rare earths. But now, Chinese regulators are signaling they're not quite sold. Local chipmakers like SMIC and Cambricon popped more than 5% following the CAC's statement, suggesting markets see this as a tailwind for China's self-reliance push. As Forrester's Charlie Dai put it: H20 sales could now face delays, just as China doubles down on homegrown tech. Underneath all this is a bigger chessboard. The U.S. had loosened chip export rules after trade talks in London, and in return, China allowed more outbound flow of rare-earth minerals. But the CAC's sudden scrutiny of the H20 chipespecially one already stripped down to meet U.S. compliancefeels like a move to keep pressure in the trade negotiations. At the same time, domestic players like Huawei are rolling out rivals like the Ascend 910C, which are already being compared to Nvidia's chips for inference workloads. As trade officials sidestep direct comment, one thing is clear: Nvidia's foothold in China remains fragile, and investors will need to watch how this unfoldsone regulatory move at a time. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Nvidia in the Crosshairs: China Just Escalated the AI Chip War
Nvidia (NASDAQ:NVDA) just hit another speed bump in China. Days after the U.S. rolled back export restrictions on its H20 chipdesigned specifically to comply with sanctionsChinese regulators summoned Nvidia to address alleged serious security vulnerabilities. The Cyberspace Administration of China (CAC) raised concerns tied to U.S. lawmakers' comments suggesting these chips may carry location-tracking or shutdown features. The agency demanded internal documentation and clarification from Nvidia's local team. No official details were shared beyond that, but investors are watching closely. The stock gained 2.5% on Germany's Tradegate, supported in part by strong earnings from Microsoft and Meta, but this probe introduces fresh uncertainty. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The timing couldn't be more delicate. CEO Jensen Huang had just wrapped up a high-profile China visit, spotlighting local champions like DeepSeek and Tencent while calling China a global AI powerhouse. Meanwhile, U.S. officials had been framing the H20 green light as a goodwill gesturehoping it would unlock better access to China's rare earths. But now, Chinese regulators are signaling they're not quite sold. Local chipmakers like SMIC and Cambricon popped more than 5% following the CAC's statement, suggesting markets see this as a tailwind for China's self-reliance push. As Forrester's Charlie Dai put it: H20 sales could now face delays, just as China doubles down on homegrown tech. Underneath all this is a bigger chessboard. The U.S. had loosened chip export rules after trade talks in London, and in return, China allowed more outbound flow of rare-earth minerals. But the CAC's sudden scrutiny of the H20 chipespecially one already stripped down to meet U.S. compliancefeels like a move to keep pressure in the trade negotiations. At the same time, domestic players like Huawei are rolling out rivals like the Ascend 910C, which are already being compared to Nvidia's chips for inference workloads. As trade officials sidestep direct comment, one thing is clear: Nvidia's foothold in China remains fragile, and investors will need to watch how this unfoldsone regulatory move at a time. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economist
08-05-2025
- Business
- Economist
Huawei and other Chinese chip firms are catching up fast
A wave of optimism has lately swept through China's chip industry. Share traders in Shanghai joke that Cambricon, a local firm, not only offers a substitute for Nvidia's processors, but for its stock, too. Although the Chinese semiconductor firm is worth but a fraction of its giant American rival, its share price has rocketed by 350% over the past year, around 15 times as much as Nvidia's.
