Do You Really Understand Huawei's Threat To Nvidia? (Rating Downgrade)

Summary

• The Trump Administration's recent restrictions on Nvidia Corporation H20 GPU exports to China, coupled with the emergence of Huawei's comparable Ascent 910C GPU alternative, has raised concerns over NVDA's longer-term outlook.
• Despite recent signs of U.S.-China de-escalation following the 90-day tariff pause, the evolving trade dynamics and regulatory deadlocks enforced by both parties remain in a fragile and precarious state.
• The following analysis will dive specifically into how the emergence of Huawei's CANN ecosystem and proprietary GPUs stands against Nvidia's existing moat preserved by CUDA.
• The analysis intends to provide a fundamental preview of Nvidia's Q1 FY 2026 earnings on May 28th as well, considering recent changes to its regulatory backdrop.