- Summary:
- Nvidia Stock Slips while Huawei is launching a rival AI chip. Can the NVDA defend the basic levels and maintain AI's leadership in advance during income?
The Nvidia Stock Price (NASDAQ: NVDA) has fallen today after reports that China's Huawei has successfully launched a next -generation AI Chip. The report has feared fear of rising competition in the emerging artificial intelligence sector.
After leading the global AI hardware market for almost two years, Nvidia faced a serious challenge from Huawei, a development that could recharge the future of the industry.
China's Huawei threatens Nvidia stock price threat
Huawei's newly developed AI Chip is designed to rival NVIDIA premium products. It targets the AI cloud infrastructure and advanced machine study applications.
The timing is critical: US exporting restrictions are severely limited NVIDIA's ability to sell its AI chips, such as the A100 and H100, to Chinese companies.
Huawei's entry into the AI Chip's high-end market raises stakes, as major Chinese giant techs such as Alibaba, among others, can change demand to local successors.
Nvidia Stock Price Review: Key Levels to watch
- The NVDA last exchanged around $ 110.85, down almost 2% intraday.
- Immediate support seated at $ 110.00 – a psychological level to act as a consumer line for the previous two sessions.
- The deeper support lies at $ 105.00, with $ 100.00 the critical line to be handled to avoid a broader correction.
A decisive rest below $ 110.00 can speed up the sale to $ 105.00, especially if the sentiment around Huawei's progress continues to build.
Will Nvidia get the Huawei storm?
Despite today's sale, most analysts argue that Nvidia's leadership position remains intact. Nvidia still boasts incompatible benefits to software ecosystems and deep partnerships with the entire global cloud.
As the income period approaches, Nvidia will need to convince investors that the leading AI technology is still strong, or the risk of losing the land to new rivals.
