Nvidia’s stock plunged over 4% following reports that its Chinese rival, Huawei, is set to launch a new AI-specific chip next month.
On Monday, Nvidia shares tumbled 4.51% to 96.91 USD on the New York Stock Exchange, breaking below the $100 mark for the first time since August 7, 2024.
This drop slashed Nvidia’s market capitalization to 2.365 trillion USD.
The sell-off was triggered by a Reuters report indicating that Huawei is poised to release advanced AI-specific chips as early as next month.
Nvidia has already been grappling with challenges stemming from AI export restrictions imposed by the Trump administration. Recently, the U.S. government curtailed Nvidia’s exports of custom H20 semiconductors designed for the Chinese market.
The news of Huawei’s impending chip release, coming on the heels of these restrictions, is expected to deal a significant blow to Nvidia’s exports to China.
Huawei’s new chip, named 910C, is reportedly two to three generations behind Nvidia’s latest offering, the Blackwell architecture.