Nvidia Acknowledges Growing Competition from Huawei Despite U.S. Sanctions
Nvidia warns of increased competition from Huawei in its annual filing, despite U.S. sanctions. CEO Jensen Huang recognizes substantial rivalry in China. Huawei’s revenues have surged in 2024 after earlier declines, particularly in its smartphone offerings, including the new Mate series using HarmonyOS NEXT. The landscape reflects ongoing tensions but also robust competitive developments.
In a recent filing, Nvidia, the semiconductor titan, has signaled an increasing competitive threat from Huawei, despite existing U.S. sanctions. This marks the second consecutive year in which Nvidia has named Huawei as a key competitor, after an absence from its competitor list for three years prior. Huawei was acknowledged by Nvidia across four out of five relevant market categories, including chips, cloud computing, processing, and networking services.
During an interview, Nvidia’s CEO Jensen Huang remarked on the competitive landscape in China, stating, “There’s a fair amount of competition in China. Huawei, other companies, are … quite vigorous and very, very competitive.” This statement reflects the industry’s dynamics despite Huawei facing significant limitations due to U.S. restrictions on technology access.
Huawei’s financial rebound has also been notable, with reported revenues surpassing 860 billion yuan (approximately $118.27 billion) in 2024, representing a 22% year-on-year increase, which is the most substantial growth since 2016. Notably, there has been a significant reduction in revenue during previous years, particularly in 2021, where revenues plummeted by almost 29%.
A revival in Huawei’s smartphone segment has been observed, particularly with the launch of its Mate 60 Pro, which features advanced downloading capabilities linked to 5G technology. Following this, the company introduced the Mate 70 series smartphones, which are powered by their self-developed operating system, HarmonyOS NEXT, showcasing their advancements despite external pressures.
In summary, Nvidia’s acknowledgment of Huawei as a competitor amid U.S. trade sanctions illustrates the complex competitive dynamics in the tech industry. Despite regulatory hurdles, Huawei has demonstrated resilience and growth in its revenue streams, especially within the smartphone market. Nvidia’s concerns highlight the significance of competitive forces emerging from China, particularly as Huawei continues to innovate and expand its market presence.
Original Source: www.cnbc.com
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