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Nvidia Stock Is Falling. This Huawei Breakthrough Is Not Going to Help. - Barron's

1. Nvidia stock dropped 1.4% amid competition from Huawei’s new AI chip. 2. Huawei plans to test its Ascend 910D chip, aiming to outpace Nvidia’s H100. 3. Nvidia faces significant sanctions limiting sales of powerful chips to China. 4. xAI, a major Nvidia customer, might raise $20 billion for AI hardware. 5. Nvidia's Chinese sales projected to decline, affecting future revenue streams.

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FAQ

Why Bearish?

Increased competition from Huawei and declining sales in China may hurt NVDA’s revenue. Historical examples include AMD gaining market share during Nvidia's supply constraints.

How important is it?

The article discusses direct competitive threats to Nvidia, influencing price and investor sentiment. The potential funding for xAI can offer some support, but competitive pressures dominate.

Why Short Term?

Immediate pressure from Huawei's competition could influence Nvidia's stock price in the near term. Long-term impacts depend on market adaptation and customer loyalty.

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