China’s Huawei Technologies has reportedly built a new AI chip it hopes will rival Nvidia’s (NVDA) products. Shares of the U.S. semiconductor behemoth have lost nearly 3% on the news today. 

According to anonymous sources that spoke with the Wall Street Journal, Huawei has already approached domestic technology companies to test the technical feasibility of its Ascend 910D. 

Huawei expects the latest addition to its Ascend series of AI chips to outperform Nvidia’s H100. Including today’s decline, Nvidia stock is down some 30% versus its year-to-date high.

Why Is Huawei News Significant for Nvidia Stock?

Huawei’s news is significant for Nvidia as it’s already grappling with stricter restrictions on the export of its H20 chips to China under President Donald Trump’s administration. 

In fact, the inability to sell that chip to the world’s second-largest economy could result in a more than $5.5 billion hit to its earnings in its current quarter, the AI darling warned in an update last week.

Meanwhile, Beijing is already encouraging local businesses to bail on NVDA and switch to domestic alternatives for advanced chips. 

So, if Huawei’s products prove competitive in terms of performance and scalability, it could permanently alter the dynamics of the AI chip market, potentially ending Nvidia’s reliance on China as a significant source of revenue for good. 

Wedbush Analyst Shrugs Off China Concerns as Temporary

Despite export restrictions and potentially rising competition from Huawei, a senior Wedbush analyst, Matt Bryson, continues to see NVDA as one of the top picks for AI exposure in 2025. 

While the China-related developments certainty hurt Nvidia stock, “with or without China, Nvidia, because of its dominance with CUDA, will be the top supplier of AI this year, in 2026, and beyond,” he argued in a recent interview with CNBC. 

Bryson’s $175 price target on Nvidia shares translates to more than a 65% upside from here. 

Should You Buy NVDA Shares on Today’s Pullback?

Investors should also note that Bryson is far from being alone in keeping bullish on Nvidia stock in 2025. 

The consensus rating on NVDA currently sits at “Strong Buy” with the mean target near $168 indicating potential upside of over 55% from current levels.