Business Insights and Market Implications

Huawei Challenges NVIDIA with Ascend 910D AI Chip

• Huawei is testing its Ascend 910D AI chip, aiming to outperform NVIDIA's H100.
• Sample shipments expected in late May, with plans to ship 800,000 Ascend 910B and 910C chips this year to domestic customers like ByteDance.
• NVIDIA's stock declined following the announcement, reflecting market concerns about competition.

US-China Trade Tensions Impact NVIDIA

• Restrictions on NVIDIA's H20 chip exports to China could cost the company $5.5 billion in license requirements.
• China is encouraging domestic adoption of local AI chips, reducing reliance on foreign technology.
• This shift could significantly impact NVIDIA's revenue from the Chinese market.

DeepSeek R2 and Huawei Chips

• DeepSeek, a Chinese AI company, is developing DeepSeek R2, a next-generation reasoning model with 1.2 trillion parameters.
• The model will use Huawei chips instead of NVIDIA's, leveraging hybrid MoE architecture for efficiency.
• This move highlights China's growing focus on domestic AI solutions and reduces NVIDIA's market share.

Wall Street Reactions

• NVIDIA shares fell after Huawei's chip announcement, amid concerns about trade tensions and potential economic downturns.
• Market sentiment is cautious as tech companies navigate geopolitical risks and economic uncertainty.

AMD Competing in the AI Space

• AMD's MI300X GPU, adopted by Microsoft and Meta, positions it as a key competitor to NVIDIA.
• The upcoming MI350 GPU is expected to further challenge NVIDIA's dominance in the AI chip market.
• AMD forecasts double-digit revenue and EPS growth for 2025, with CEO Lisa Su targeting $10 billion annual revenue from GPU data centers.

Palantir Stock Predictions

• Palantir Technologies is projected to generate $2.87B in 2024 revenue with a net income of $0.477B.
• The consensus one-year price target is $93.69, while bullish forecasts predict a potential stock price of $120 by 2025.
• Long-term projections suggest $8.482B revenue and $2.990B net income by 2030, with a projected stock price of $192.

Strategic Considerations

• The AI chip market is becoming increasingly competitive, with Huawei, NVIDIA, and AMD vying for dominance.
• Geopolitical tensions are driving domestic adoption of local technologies in China, impacting global tech companies like NVIDIA.
• Companies like DeepSeek are shifting to alternative chip suppliers, reflecting broader trends in the AI ecosystem.
• Wall Street is closely monitoring the financial health of major tech players amid economic uncertainty.

Long-Term Effects and Regulatory Impacts

• Trade tensions between the US and China could reshape the global semiconductor industry, with long-term implications for market dynamics.
• Regulatory changes may further influence chip exports and domestic technology development in key markets.