Zinger Key Points
- AMD may have reacted to reports suggesting Huawei has developed an AI chip to challenge Nvidia.
- Huawei hopes its new AI chip will outperform Nvidia's H100 chip.
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Advanced Micro Devices, Inc. AMD shares traded lower Monday. AMD, along with the semiconductor industry, may have reacted to reports suggesting Huawei developed an artificial intelligence (AI) chip to challenge NVIDIA Corp NVDA.
What To Know: According to the Wall Street Journal, the Chinese technology company developed the Ascend 910D and began approaching other technology companies about testing its capabilities.
Huawei hopes that its Ascend AI processors will be more powerful than the Nvidia H100 chip.
The Ascend 910D utilizes new packaging technologies to integrate more silicon dies together in order to boost performance. However, the chip is reportedly less power-efficient compared to the H100, according to people familiar with the matter.
AMD, along with the semiconductor industry, may have traded lower as investors assess the effects of the increased competition from Huawei on the industry. A stronger Huawei could add pressure to American chipmakers by intensifying global competition in the AI and semiconductor markets.
AMD Price Action: AMD stock closed 0.26% lower at $96.39, according to data from Benzinga Pro.
See Also:
• JP Morgan Cautions Trade Tensions Are Weighing On Eastman Chemical Growth Prospects
Image: This illustration was generated using artificial intelligence via Midjourney.
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