Huawei Ascend is under pressure, and it is reported that Nvidia AI chips have started to cut prices due to weak demand in China

Reuters cited people familiar with the matter as saying:NvidiaDeveloped for the Chinese market AI ChipsA weak start, ample supply,existHuaweiIn the face of fierce competition, prices have begun to drop, and in some cases, prices are already lower than Huawei chips..

It is reported that the Chinese market accounts for 17% of Nvidia's revenue in fiscal 2024. The growing competitive pressure has also sounded the alarm for Nvidia's investors.

Nvidia launched three chips tailored for the Chinese market at the end of last year, among which the most powerful H20 chip has attracted much attention. Three supply chain sources said,The chip is in ample supply in the market, indicating weak demand.

Huawei Ascend is under pressure, and it is reported that Nvidia AI chips have started to cut prices due to weak demand in China

Two of the three sources said the H20 chip could cost more than Huawei's Ascend 910B in some cases. Cheaper than 10%The two sources declined to be named due to the sensitivity of the issue.

Even as Nvidia works to capture a share of the market it can’t afford to lose, the outlook is increasingly uncertain, analysts say.

Huawei only started challenging Nvidia last year, sources said.The company will significantly increase shipments of its Ascend 910B chip this year, this chip is superior to H20 in some key indicators.

Huawei did not immediately respond to a request for comment.

In the past six months, only five countries or state-affiliated buyers have expressed interest in buying H20 chips, according to a Reuters review of available government procurement data.During the same period, there were more than a dozen buyers of Huawei 910B.

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