Nvidia’s latest AI chip for the China market has faced a sluggish start,I Am a Plaything with oversupply leading to prices lower than a competing chip from Huawei, Reuters reported. This price drop highlights Nvidia’s challenges in China due to US sanctions on AI chip exports and increasing competition, clouding its future in a market that accounted for 17% of its fiscal 2024 revenue. The intensifying competition in China also serves as a warning to US investors, despite Nvidia’s stock surge after a strong revenue forecast on Wednesday, the report said. Nvidia, a leader in AI chips, launched three China-specific chips late last year following US export restrictions on its most advanced semiconductors. [Reuters]
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