NVDA Stock In Focus As Huawei Announces 2 Advanced AI Chips For 2027

• Huawei will launch the 960DT in Q1 2027 and Ascend 960PR in Q3 as it expands its AI chip lineup.
• Its UnifiedBus technology is designed to connect many processors into powerful AI computing systems.
• Chinese chipmakers are stepping up development as Nvidia’s access to the country’s market remains constrained by U.S. restrictions.

Huawei Technologies plans to launch two new AI chips in 2027 as the Chinese technology giant accelerates efforts to build a domestic alternative to Nvidia’s AI computing hardware.

Huawei rotating chairman David Wang said Thursday that the company plans to launch the 960DT in the first quarter, followed by the Ascend 960PR in the third quarter. The company is also developing technology to link large numbers of AI processors so they can operate as a single computing system, Reuters reported.  

NVDA stock was up 1% in overnight trading ahead of Thursday.

Huawei Scale AI Chip Technology, China Pushes For Self-Reliance

Huawei’s UnifiedBus technology is designed to allow AI chips to communicate more efficiently inside large computing systems. The company has developed 11 semiconductors using the technology and says its largest “superclusters” can connect as many as 1 million AI processors, according to the report. 

Without unrestricted access to Nvidia’s most advanced processors, Chinese companies could combine larger numbers of domestically available chips to deliver greater computing capacity, although the approach depends heavily on fast, efficient communication between processors.

The push comes as Chinese technology companies accelerate domestic AI chip development amid U.S. restrictions on advanced semiconductor exports to China. Washington has imposed controls on shipments of advanced AI chips and chipmaking equipment, prompting Chinese companies and policymakers to develop local alternatives.  

That effort extends beyond Huawei. Tencent-backed Enflame Technology, one of China’s prominent AI chip startups, recently listed on the Shanghai stock exchange, with shares nearly tripling on its first day of trading.

Nvidia Vs. Huawei

Nvidia remains the established leader, with its GPUs and software ecosystem widely used by AI developers globally. Huawei said its own AI ecosystem has thousands of active developers, highlighting the importance of building software support alongside hardware.

Nvidia’s access to the Chinese market has meanwhile remained uncertain. While Washington has allowed limited sales of its H200 chips, shipments have been constrained, and the U.S. continues to restrict access to more advanced computing technology. Reuters reported last month that only very few H200 shipments had begun.  

As Chinese chipmakers continue expanding their hardware and software ecosystems, Huawei’s new products could give domestic companies additional alternatives to Nvidia in a market where access to Nvidia’s most advanced chips remains restricted.

Retail View On NVDA

On Stocktwits, retail sentiment for NVDA remained ‘bearish,’ unchanged over the past week, with trading pointing to the interest rate increase and the forthcoming Anthropic IPO as macro triggers for the stock.

“$NVDA It all depends on how the market reacts tomorrow to the rate hike already priced in. IMO the market could keep pumping through the first week of October with the Anthropic IPO expected around Oct mid. MMs may push the market higher to create liquidity around the IPO,” said a trader.

Shares of Nvidia are up 15% year to date, compared to the 67% gains in the iShares Semiconductor ETF (SOXX).

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