April 28 – NVIDIA (NASDAQ:NVDA) dragged semiconductor shares lower Monday as investors digested news that Huawei Technologies is poised to trial its most powerful AI accelerator yet, a potential challenger to NVIDIA’s top-tier chips.
The tech-heavy Nasdaq Composite slipped alongside the S&P 500 and Dow Jones Industrial Average ahead of a packed week of Big Tech earnings.
NVIDIA shares slid about 4%, while Advanced Micro Devices (NASDAQ:AMD) edged down roughly 2%. Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM) each dipped near 2%.
Reports over the weekend indicate Huawei has begun lining up Chinese partners to test its Ascend 910D AI processor. Last week, Huawei said it plans to start mass shipments of the Ascend 910C chip domestically as soon as next month.
New U.S. export curbs now force NVIDIA to secure a license before shipping its H20 AI accelerators to China, a restriction that could shave as much as $5.5 billion from NVIDIA’s revenue, analysts warn.
Memory-chip maker Micron Technology (NASDAQ:MU) fell about 3%, while Marvell Technology (NASDAQ:MRVL) and Taiwan Semiconductor Manufacturing (NYSE:TSM) each dropped roughly 3% and 2%, respectively.
With major AI and cloud-computing players set to report quarterly results this week, traders will be watching closely for any signs of demand shifts in the red-hot AI chip market.
This article first appeared on GuruFocus.
