Blow For Nvidia? Baidu Reportedly Switches To Huawei For AI Chips, Ditching Its Long-time Supplier
Portfolio Pulse from Benzinga Neuro
Baidu Inc. (NASDAQ:BIDU) has reportedly switched from Nvidia Corporation (NASDAQ:NVDA) to Huawei for the supply of AI chips. The move is seen as a response to increasing U.S. restrictions on tech exports to China. The order, placed in August, included 1,600 Huawei Ascend 910B AI chips, worth around 450 million yuan ($61.83 million). This shift indicates Chinese tech firms adjusting to geopolitical pressures.
November 07, 2023 | 9:01 am
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NEGATIVE IMPACT
Nvidia's loss of Baidu as a customer for AI chips could negatively impact the company's revenues.
Nvidia's loss of Baidu as a customer for AI chips could negatively impact the company's revenues. This could have a negative impact on Nvidia's stock in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Baidu's switch to Huawei for AI chips could be a strategic move to prepare for potential future restrictions on purchasing from Nvidia.
Baidu's decision to switch from Nvidia to Huawei for AI chips is likely a strategic move to prepare for potential future restrictions on purchasing from Nvidia. This could have a neutral impact on Baidu's stock in the short term as the company is adjusting to geopolitical pressures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80