Nvidia Gets Dunked as Huawei’s New Chip Flips the Script

Huawei’s latest silicon surprise sends Nvidia scrambling—because nothing says ’geopolitical chess match’ like a sudden 20% drop in AI chip valuations.

Wall Street analysts now frantically revising Q2 projections while pretending they ’saw this coming.’ Classic.

However, Nvidia recently indicated that it will encounter new restrictions regarding the sale of its H100 chips in China, raising concerns of a possible slowdown in sales within China. The possibility of a domestically produced competing option could further intensify the sales pressure on Nvidia in China, which still accounts for a significant portion of Nvidia’s sales.

Nvidia’s valuation soared over the last two years as the company reaped profits from AI chip sales.

However, this trajectory reversed in 2025 when investors began questioning the strength of demand for AI chips as AI models became less reliant on intensive computing.

The massive tariffs that the two giants have slapped on one another in recent weeks, to 145 percent from 125 percent, have been the main focus of the ongoing trade war between the United States and China.

Donald Trump has, however, recently taken a more technical measure to thwart Beijing’s aspirations: tight limitations on Nvidia’s chip exports to China.

The company was established in 1993 and focuses on producing graphics processing units (GPUs). These chips can instantly complete incredibly complex calculations created to operate video games.