Huawei Challenges Nvidia in AI as U.S. Policy Fuels Semiconductor Rally

Huawei Technologies unveiled its CloudMatrix 384 AI computing platform at the World Artificial Intelligence Conference in Shanghai, directly targeting Nvidia's dominance in high-performance AI accelerators. The system boasts multi-petaflop capabilities and custom-designed chips optimized for AI training, with enhanced interconnects and thermal management.

Nvidia shares edged 0.78% higher to $174.85 following the U.S. administration's release of a comprehensive 90-point AI policy framework. The 'America's AI Action Plan' proposes streamlined regulations and infrastructure development to maintain technological leadership.

The semiconductor giant continues to outperform broader markets, delivering 1,600% returns over five years. Investors remain bullish on Nvidia's Blackwell architecture despite Huawei's competitive push into China's restricted AI chip market.