Huawei Technologies plans to challenge Nvidia’s (NASDAQ: NVDA) next-generation artificial intelligence chips in China.
According to Bloomberg, Huawei aims to double the output of its Ascend 910C chips to approximately 600,000 units in 2026. That’s up from roughly 300,000 units this year. Including other products in the Ascend line, the company intends to produce up to 1.6 million dies in 2026, indicating that it and its partner, Semiconductor Manufacturing International Corp. (SMIC), have found ways to overcome bottlenecks caused by U.S. sanctions.
Still, Nvidia stock remains resilient, trading upwards on Monday close to its 52-week high of $184.55.
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The push highlights Huawei’s role as China attempts to cut its reliance on foreign chips.
Beijing prioritized semiconductor self-sufficiency after the 2020 pandemic-induced chip crisis highlighted its importance across autos, defense, and artificial intelligence sectors.
Huawei introduced new Ascend models slated through 2028. The company expects to launch a successor to the 910C, referred to as the 910D, in late 2026, with an initial target of 100,000 units. Long-term, it plans to launch the Ascend 950, 960, and 970 chips as it pushes to build competitive alternatives to Nvidia’s products.
Despite these ambitions, Huawei’s chips still trail Nvidia’s in performance. Analysts estimate the Ascend 950 will reach only 6% of Nvidia’s next-generation VR200 superchip. Huawei currently produces dies using SMIC’s enhanced 7-nanometer process, compared to Nvidia’s 4-nanometer Blackwell GPUs, which are manufactured by Taiwan Semiconductor Manufacturing Co (NYSE: TSM).
Nvidia continues to generate billions from China despite U.S. export curbs. Chinese firms ordered around one million H20 chips—worth more than $16 billion in a single quarter—driving $17 billion of Nvidia’s $18 billion H20 sales since 2025. That demand accounted for 13% of its fiscal 2024 revenue.
Bernstein expects Nvidia’s China market share to fall to 55% this year from 66% in 2024. Still, Bank of America analyst Vivek Arya projects $6 billion to $10 billion in potential China sales through January, though $3 billion to $4 billion may face delays due to supply constraints. CEO Jensen Huang has described China as a $50 billion opportunity if Nvidia continues supplying sanction-compliant chips.
Price Action: At last check Monday, NVDA stock were trading higher by 2.88% to $183.32.
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