Huawei Prepares Two New AI Chips—What Will Be the Impact on NVIDIA Stock?

The artificial intelligence (AI) chip competition is entering a new phase after Huawei accelerated its Huawei AI chip 2027 product roadmap. The Chinese technology company will introduce two new chips from the Ascend family, namely Ascend 960DT and Ascend 960PR.

The move is drawing attention because Huawei is not only developing AI processors but also building large-scale computing infrastructure designed to connect multiple chips. 

This development could become a factor investors consider when monitoring NVIDIA stock (NVDA) and the company's position in the Chinese AI market.

Key Takeaways

• Huawei has accelerated the launch of Ascend 960DT to Q1 2027 and Ascend 960PR to Q3 2027.
• Huawei's strategy covers chips, UnifiedBus interconnect technology, and large-scale computing systems, rather than focusing solely on single-chip performance.
• The impact of Huawei chips on NVIDIA is more likely to be seen in competition in the Chinese market and customer diversification, while NVIDIA still has an advantage in software ecosystem and platform scale.

Huawei Prepares Two New AI Chips for 2027

Huawei announced the accelerated development of the Ascend 960 family at Huawei Connect 2026. 

According to the company's official announcement, Ascend 960DT will be available in the first quarter of 2027, three quarters earlier than the previous roadmap. Meanwhile, Ascend 960PR is targeted for availability in the third quarter of 2027.

Both products are part of Huawei's strategy to continuously develop AI accelerators. Huawei also stated that it will continue a one-generation-per-year development cycle, with Ascend 970 in 2028 and Ascend 980 in 2029.

This means Huawei's AI chip 2027 roadmap is not just about one new product. The company is building a multi-generation roadmap to strengthen China's domestic AI computing capacity.

Read Also: Nvidia Stock Nears All-Time High, Will the Rally Continue?

More Than Chips, Huawei Is Building AI Infrastructure

One important aspect of Huawei's AI chip strategy is its systems approach. Huawei is developing UnifiedBus, an interconnect technology that connects processors, NPUs, memory, storage, networks, and other components within a computing system.

Huawei also introduced Peerium Computing Architecture, which is designed to allow up to one million processors to work as a single computing system. UnifiedBus is a key component of this architecture.

This approach is important because AI data center performance does not depend solely on the capabilities of a single chip. As AI models become larger, the ability to connect thousands or even millions of processors also becomes an important factor.

Huawei says Atlas 950 SuperPoD and SuperCluster are part of this development. The company had previously also targeted systems capable of integrating more than one million NPUs.

Read Also: Ren Zhengfei Left China? Here Is the Profile of Huawei's Founder and the Facts

What Is the Impact on NVIDIA?

The main question for investors is how Huawei's AI chips could impact NVIDIA, particularly NVDA stock.

In the medium term, Huawei's development could increase competitive pressure on NVIDIA in China. 

U.S. technology export restrictions have made it difficult for Chinese companies to obtain NVIDIA's most advanced AI chips. 

This situation gives Huawei room to develop domestic alternatives. Reuters reported that demand for Huawei's AI computing equipment already exceeds its production capacity.

If Huawei succeeds in increasing production capacity and Ascend adoption, some AI computing demand in China could shift toward domestic products. This could limit NVIDIA's opportunities in one of the world's largest technology markets.

However, this does not automatically mean NVIDIA's dominance will be immediately displaced. NVIDIA has a broad CUDA ecosystem, in addition to GPUs, networking, software, and data center infrastructure. Reuters also noted that NVIDIA still has an advantage in software ecosystem compared with Huawei.

Therefore, the impact of Huawei on NVIDIA stock is better viewed as a long-term competitive development rather than an immediate fundamental change in the stock price.

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NVIDIA Stock Price and NVDA Sentiment

Investors looking for NVIDIA stock today or NVDA today need to separate the Huawei factor from other catalysts influencing the stock's movement.

The market data used in the material shows NVDA at around US$219.13, up 2.45%, with the US$220 area being a level watched by the market. However, NVIDIA's stock price can change each session and is influenced by more than just competition from Huawei's chips.

Global AI demand, data center spending, NVIDIA's earnings outlook, export restrictions to China, and developments from competitors such as AMD can also affect NVDA stock price.

In fact, demand for NVIDIA computing remains strong. Reuters reported that one AI cloud provider increased the price of services powered by NVIDIA chips due to high demand for computing capacity.

Read Also: Will Nvidia Stock Rally Again or Correct?

Huawei vs NVIDIA: The Competition Continues to Evolve

The development of Huawei AI chips 2027 shows that AI competition is increasingly shifting from chip specifications to ecosystem competition.

Huawei is seeking to combine Ascend, UnifiedBus, SuperPoD systems, storage, networking, and software into a single infrastructure. NVIDIA also has a similar approach through a combination of GPUs, networking, software, and data center platforms.

Therefore, important indicators going forward will not only be how quickly Huawei launches its 2 new AI chips, but also production capacity, customer numbers, software compatibility, system performance, and its ability to meet demand.

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For investors monitoring NVIDIA stock, Huawei's development is a competitive factor worth watching, particularly in relation to the Chinese market. 

However, the actual impact on NVIDIA's revenue and valuation can only be assessed more clearly once Huawei's 2027 products become available and their adoption levels become visible.

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FAQ

Which Huawei AI chips will be launched in 2027?

Huawei plans to introduce Ascend 960DT in the first quarter of 2027 and Ascend 960PR in the third quarter of 2027.

What is the impact of Huawei chips on NVIDIA?

Huawei chips could increase competition for NVIDIA in the Chinese market, particularly if Ascend production capacity and adoption continue to grow. However, NVIDIA still has an advantage in software ecosystem and AI platforms.

Has Huawei become a competitor to NVIDIA?

Huawei is an emerging competitor in AI accelerators, particularly in China. The company is developing not only Ascend chips but also large-scale computing infrastructure and interconnect technology.

What affects NVDA stock price?

NVDA stock price is influenced by various factors, including global AI demand, data center spending, NVIDIA's financial performance, export regulations, chip competition, and technology market sentiment.

When will Huawei AI chips 2027 be available?

Ascend 960DT is targeted for availability in the first quarter of 2027, while Ascend 960PR is targeted for the third quarter of 2027.