U.S. Curbs Propel Huawei Chip Orders While Nvidia Shares Slide 1.6%
Alibaba, ByteDance and Tencent are securing Huawei's Ascend 950 AI chips after DeepSeek V4 launch, as U.S. curbs limit Nvidia shipments and Huawei targets 750,000 chip units this year. OpenAI's reported sales shortfall has pulled Nvidia shares down about 1.6%, signaling cooling demand forecasts.
1. Chinese Tech Firms Pivot to Huawei Chips
Companies including Alibaba, ByteDance and Tencent have approached Huawei for Ascend 950 AI chips following the DeepSeek V4 model launch, driven by U.S. export restrictions on Nvidia and AMD. Huawei plans to ship 750,000 units of its 950PR chips this year, though supply may still fall short of burgeoning demand.
2. Impact of U.S. Export Rules on Nvidia
New U.S. curbs have constrained Nvidia's ability to sell high-end AI GPUs to Chinese customers, prompting a strategic shift toward domestic suppliers. This limitation has pressured Nvidia's volume outlook in a key market, potentially reducing data center revenue growth in coming quarters.
3. OpenAI Growth Concerns Hit Nvidia Shares
Reports of OpenAI missing internal sales and user targets have sparked a sell-off in Nvidia stock, with shares dipping around 1.6%. The move underscores how sentiment around major AI partners like OpenAI can sway demand expectations for Nvidia's GPU lineup.