Nvidia (NVDA) stock fell as its Chinese competitor Huawei, which is "obviously better," began to attract customers affected by US export restrictions.
Shares of the American tech giant Nvidia fell today after reports that China's artificial intelligence rival Huawei has started to attract customers affected by the Trump-led chip export restrictions.
Customers turning to Huawei
Huawei has begun delivering its advanced AI chips "clusters" to Chinese customers who have increased their orders following Washington's restrictions on Nvidia H20 chips, according to the Financial Times.
The article stated that Huawei has sold more than 10 of its CloudMatrix 384 systems, which connect large numbers of chips. In fact, they connect 384 AI processors to provide computational power for developing AI models and services.
It was reported that deliveries have been made in the data centers of China's technology companies.
"Huawei's development of CloudMatrix 384 means that China now has an AI system capable of outperforming Nvidia," Dylan Patel, founder of chip consulting firm SemiAnalysis, told the Financial Times.
Huawei claims superior performance
Huawei told customers that its CloudMatrix significantly outperforms Nvidia's NVL72, which consists of 72 GB200 chips. Huawei claimed to surpass NVL72 in key metrics, stating a 67% higher computing power and over three times the aggregated memory capacity.
Despite the challenges brought by Huawei's rise and the deepening trade tensions between China and the US due to export restrictions and tariffs, Nvidia remains committed to delivering products to China and cooperating with it.
Nvidia CEO Jensen Huang recently visited China and expressed his intention to expand Nvidia's influence in the Chinese market. It was reported that Nvidia was even considering setting up a joint venture in China, although Nvidia denied this claim.
Original article: https://www.toutiao.com/article/1830919259422730/
Disclaimer: This article solely represents the author's views.