Nvidia (NVDA) stock dropped just over 2% on Monday after reports surfaced that Chinese tech giant Huawei is preparing a new advanced AI chip in response to President Trump's export ban on Nvidia chips to China. According to The Wall Street Journal, citing unnamed sources, Huawei has reached out to several Chinese tech firms to test its new AI chip, the Ascend 910D, which is expected to surpass the power of Nvidia's H100 AI chips. The 910D is the successor to Huawei's previous 910B and 910C chips and is still in early development stages. The Wall Street Journal also reported that Huawei plans to deliver more than 800, 000 Ascend 910B and 910C chips to customers, including state-owned telecom carriers and AI developers like ByteDance, the parent company of TikTok. Read more about Nvidia's stock fluctuations and today’s market performance. Nvidia shares tumbled after the company revealed in a recent regulatory filing that US authorities had effectively banned exports of its H20 chips designed specifically for China, in line with increasingly strict US trade regulations. Nvidia warned it would incur a $5. 5 billion loss due to this policy change, while analysts at JPMorgan estimate the ban could reduce Nvidia's revenue by as much as $16 billion this year. Earlier this month, Bernstein noted that China represented $17 billion, or 13%, of Nvidia's revenue in fiscal year 2025. Meanwhile, DA Davidson analyst Gil Luria told Yahoo Finance that Nvidia’s Chinese revenue share might be even higher—potentially up to 40%—due to chip smuggling. Nvidia stock declined last week after Reuters reported that Huawei’s 910C chips might start shipping as soon as May and are reportedly competitive with Nvidia’s H100 chips.

The banned Nvidia H100 chips, from 2022, are two generations behind Nvidia’s newest Blackwell series. Nvidia’s stock has fallen approximately 19% in 2025, as the leading AI chipmaker faces investor concerns related to Big Tech’s AI expenditures and the ongoing trade tensions resulting from Trump’s policies. Earlier this month, the US government announced an investigation into Nvidia’s use of AI chips in China. In parallel, CEO Jensen Huang visited China and met with trade officials. At the same time, Nvidia is pushing to expand its domestic manufacturing, committing $500 billion toward building out the US AI supply chain. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton. bsky. social or email her at laura. bratton@yahooinc. com. Click here for the latest technology news impacting the stock market.