Huawei Targets Nvidia's Turf With New AI Chip
Huawei Targets Nvidia's Turf With New AI Chip
Anusuya LahiriSun, March 29, 2026 at 3:31 AM UTC
0
Alibaba Group Holding Limited and other Chinese tech firms are accelerating a shift toward domestic AI chips as U.S. restrictions on Nvidia Corp. reshape the competitive landscape and boost Huawei's position.
Alibaba, ByteDance Drive Huawei Chip Momentum
Alibaba and ByteDance are preparing to order Huawei's latest AI chips after customer testing delivered strong results, marking a shift from earlier hesitation around Huawei's Ascend 910C, Reuters reported on Friday, citing sources familiar with the matter. The improved reception signals growing acceptance of domestic alternatives among China's largest tech players.
Don't Miss:
Most Americans underestimate what they'll need to retire. Take a quick quiz to see if you're prepared.
This Energy Storage Company Already Has $185M in Contracts—Shares Are Still Available
Compatibility Gains Strengthen Huawei's Position
Huawei is gaining traction with its new 950PR chip due to improved compatibility with Nvidia's CUDA ecosystem and faster performance. The company began sending samples in January and plans to start mass production soon, targeting around 750,000 units in 2026, with broader shipments expected in the second half of the year.
Nvidia Curbs And Domestic Push Reshape Market
U.S. restrictions on advanced Nvidia chips are creating an opening for Huawei and other local players, while China accelerates efforts to build its own semiconductor capacity.
Companies such as Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor Limited are expanding advanced chip production, aiming to significantly increase output despite equipment constraints.
At the same time, JPMorgan analyst Harlan Sur said Nvidia still holds significant upside if export approvals improve, estimating that every 100,000 H200 GPUs shipped to China could generate about $3 billion in revenue. He noted that case-by-case approvals could reopen the market, with strong Chinese demand ready to convert into revenue if restrictions ease.
Trending: This Startup Thinks It Can Reinvent the Wheel — Literally
Technical Analysis
Nvidia is trading 4.2% below its 20-day simple moving average (SMA) and 6.7% below its 100-day SMA, keeping the intermediate trend under pressure even as the stock tries to firm up.
Shares are up 53.67% over the past 12 months, and the stock is closer to its 52-week lows than its highs, trading in the $86.62 to $212.19 range.
The RSI is at 39.02, which sits in neutral territory but closer to the "washed-out" side of the range than to overbought conditions. Meanwhile, MACD is at -2.7707 and remains below its signal line at -1.9507, reinforcing bearish momentum.
Advertisement
The combination of an RSI below 50 and a bearish MACD suggests mixed momentum, with downside pressure still outweighing the early bounce.
Key Resistance: $194.00
Key Support: $170.50
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the May 27, 2026 (estimated) earnings report.
EPS Estimate: $1.74 (Up from 96 cents YoY)
Revenue Estimate: $78.71 Billion (Up from $44.06 Billion YoY)
Valuation: P/E of 34.9x (Indicates premium valuation relative to peers)
See Also: This Under-$1 Pre-IPO AI Company Is Still Open to Retail Investors — Learn More
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $281.04. Recent analyst moves include:
Rosenblatt: Buy (Maintains Target to $325.00) (Mar. 23)
Cantor Fitzgerald: Overweight (Maintains Target to $300.00) (Mar. 23)
Raymond James: Strong Buy (Raises Target to $323.00) (Mar. 19)
Top ETF Exposure -
Amplify CWP Growth & Income ETF (NYSE:QDVO): 9.73% Weight
REX AI Equity Premium Income ETF (NASDAQ:AIPI): 9.97% Weight
Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF (NYSE:USNZ): 9.58% Weight
Significance: Because NVDA carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
Read Next: Blue-chip art has historically outpaced the S&P 500 since 1995, and fractional investing is now opening this institutional asset class to everyday investors.
Photo via Shutterstock
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga:
APPLE (AAPL): Free Stock Analysis Report
TESLA (TSLA): Free Stock Analysis Report
This article Huawei Targets Nvidia's Turf With New AI Chip originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: “AOL Money”
