Nvidia Flags Intensifying Competition from Huawei Despite U.S. Sanctions
Tech giant Nvidia has raised concerns over increasing competition from Chinese telecommunications firm Huawei, even as U.S. sanctions continue to restrict the company’s access to American technology.
In its latest annual filing on Wednesday, Nvidia identified Huawei as a key competitor for the second consecutive year. The Chinese company was listed as a rival across four major categories: chips, cloud services, computing processing, and networking products. This marks a significant shift, as Huawei was not considered a competitor for at least three years prior to its inclusion in 2023.
Nvidia CEO Jensen Huang acknowledged the competitive landscape in China, stating in an interview with CNBC that Huawei and other companies in the region are “vigorous and very, very competitive.”
Huawei has been subject to U.S. trade restrictions since 2019, limiting its access to advanced technology, including 5G chips and Google’s Android operating system. Despite these sanctions, the company has seen a resurgence, reporting a revenue of over 860 billion yuan ($118.27 billion) in 2024 – marking a 22% increase from the previous year and its fastest growth since 2016.
Huawei’s smartphone division, which suffered a major setback due to U.S. sanctions, began making a comeback in 2023 with the launch of the Mate 60 Pro, a device featuring advanced semiconductor chips that enable high-speed connectivity. Building on that momentum, the company recently introduced the Mate 70 series, powered by its first fully self-developed operating system, HarmonyOS NEXT.
Huawei typically releases its full annual financial report in March, which is expected to provide further insights into its recovery and expansion efforts in the global tech market.
