Nvidia Slashes AI Chip Prices in China Amid Intense Competition from Huawei

US sanctions and abundant supply force Nvidia to discount its H20 chips to compete with Huawei's Ascend 910B in the critical Chinese market.

Nvidia's H20 AI chips, designed for China, are selling at over a 10% discount compared to Huawei's 910B due to weak demand and oversupply.
US sanctions prevent Nvidia from exporting its most advanced chips to China, impacting its market share and revenue.
Huawei's Ascend 910B outperforms Nvidia's H20 in key metrics, leading Chinese companies to favor domestic alternatives.
Nvidia's data center revenue in China has dropped significantly, contributing only 17% to its total revenue for fiscal 2024.
Analysts predict continued challenges for Nvidia in China as it navigates US export restrictions and heightened local competition.