Huawei Speeds Up AI Chip Launch, Pressures Nvidia Dominance

Nvidia's stock price gained approximately 2.5% to $219.24 on Thursday as Huawei announced it would launch its Ascend 960DT AI chip in early 2027, three quarters earlier than initially expected.

Huawei is accelerating its system-scale challenge, aiming to link as many as one million processors through its Peerium architecture, which targets Nvidia's dominance in GPUs and tightly integrated AI infrastructure.

However, Huawei faces a major constraint: production still cannot satisfy domestic demand inside China, limiting both local adoption and overseas expansion. This distinction matters, as Nvidia's AI engine already operates at enormous commercial scale, with data-center revenue reaching $89 billion, accounting for roughly 92.5% of the company's latest quarter.

Nvidia carries a GuruFocus Score of 95 out of 100, with standout profitability, growth, and financial strength, but a weaker GF Value score suggests potential drawbacks in valuation. The real test will be whether Huawei can turn ambitious processor counts into reliable supply, software adoption, and customer deployments at scale.