The Nvidia stock comeback continued Tuesday despite a report that the chip giant faces a new challenger in China.
Huawei is planning to roll out a new AI chip for the China market, which it said is comparable to Nvidia's H100, The Wall Street Journal reported, citing unnamed sources. Huawei plans to start to shipping the new AI chip in October, the report said.
Nvidia introduced the H100 last year, but is barred from selling it directly in China due to U.S. sanctions. The Biden Administration has said it wants to prevent China's military from importing advanced semiconductors and chip manufacturing equipment.
Late last year, Nvidia stock fell sharply after the Biden Administration announced new restrictions that target chips Nvidia created for the Chinese market. The U.S. has also banned the sale of Huawei telecommunications equipment, citing national security risk.
Nvidia Stock Rally Continues
Despite the potential challenge in China, Nvidia stock rallied again, extending its rally for a second day.
Shares gained 4.4% to 113.84 in morning trades, moving above the 21-day average. NVDA stock rose 4.1% on Monday, and has bounced back from its Aug. 5 low of 90.69. It's still below its 50-day line.
Other chipmakers also posted gains Tuesday. Advanced Micro Devices was up more than 2% at 139.59, Intel climbed more than 2% to 19.80 and Qualcomm rose more than 1% to 164.67. All have fallen sharply in the last few months.
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