Nvidia shares fall by 5% after Huawei Ascend 920 announcement

Officially announced at the end of last week, Huawei’s Ascend 920 Ai accelerator has helped to overthrow the good perception of the market over Nvidia. Soon after the new product is revealed, the actions of the manufacturer known by the GeForce line suffered an immediate devaluation of 5.6%.

According to WCCFTECH, this was a reflection of the belief that Huawei’s new product can occupy a market space that Nvidia will no longer be able to fill. This is because it was prohibited from selling H20 accelerators in China, who have been responsible for relevant parts of their profits.

Although the device can be marketed again in Chinese territory, The company will depend on a license from Donald Trump’s government to be able to do this. Given the recent history of relations between the United States and China, it seems quite unlikely that this permission will be granted in the near future.

Nvidia will not give up the Chinese market

The ASPE 920 announcement was particularly hard for Nvidia due to the capabilities of the new accelerator. If in the past Huawei has not been able to compete at the same level as the Western company, its new product promises results that reach 60% of a H100-something that makes it plausible to consider it a replacement of the H20 AI.

Although the new device should only start its mass production from the second half of 2025, It already seems positioned to yield billions to manufacturerand. Meanwhile, the company led by Jensen Huang will have to continue dealing with tariff barriers and other goods to export goods to China.

However, Huang told CCTC that he does not intend to give up on this lucrative market. The executive explains that he is willing to pay the necessary costs and make adaptations to his hardware to “continue to serve the market.” However, so far Nvidia has not disclosed concrete plans to respond to current uncertainties.

Fonte: Yahoo Finance