BUZZ-Nvidia falls on report Chinese rival Huawei developing new AI chip

Reuters
04-29
BUZZ-Nvidia falls on report Chinese rival Huawei developing new AI chip

** AI chip behemoth Nvidia's NVDA.O shares fall 3.4% to $107.22 after media report Huawei is preparing to test its latest, most powerful AI processor to challenge NVDA chips

** Separately, Huawei [RIC:RIC:HWT.UL] plans to begin mass shipments of its advanced 910C AI chip to Chinese customers as early as next month, Reuters had reported earlier in April

** The U.S. government's tighter curbs on shipments of advanced chips to China, such a Nvidia's H20 tailored to meet earlier export restrictions, have hurt American chipmakers' access to the country' key semiconductor market

** This could lead to more Chinese customers relying on domestic chipmakers like Huawei, analysts say, threatening NVDA's market position

** AI chip peer AMD AMD.O down 1.8% at $94.92

** Analysts' average recommendation for NVDA shares is "buy"; their median PT is $169.00- LSEG

** NVDA down ~20% YTD, pressured by trade tensions and investor jitters around pay-outs from heavy AI-linked spending

(Reporting by Arsheeya Bajwa in Bengaluru)

((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))

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