Nvidia (NVDA) shares closed slightly lower on Friday following a Reuters report that the chipmaker has to delay the launch of its AI-focused chip for China, one that was specifically designed to comply with US restrictions on certain chips being exported to the country. Constellation Research Founder and Principal Analyst R "Ray" Wang explains that "it's not easy to get a chip out there. It's not easy to get a chip certified." Wang tells Yahoo Finance Live that though this delay could leave an opening for Huawei, given how long it takes to develop a chip, it's going to be just as hard for other rivals to get into the market.
Elaborating on Huawei's opportunity, Wang says right now, it doesn't have the chips to compete with Nvidia. "You're taking a Rolls-Royce to solve an AI problem, maybe they'll just use a few more Huawei chips, which would be the equivalent of getting a Ford or GM chip out there," Wang says adding that "you don't always have to use the high-end chips to get to the answer and you might have some workarounds along the way."
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November 25, 2023 at 02:02AM
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Nvidia: Why investors shouldn't fret a China chip delay - Yahoo Finance
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