Chinese tech firm Huawei admitted that its chips are still weaker than Nvidia’s (NVDA) when it comes to raw power and speed. However, at its Huawei Connect conference, Chairman Eric Xu laid out a rare and detailed three-year plan to challenge the chipmaker’s dominance in AI, which drew heavy media attention. As part of this plan, Huawei introduced its next-generation of AI chips along with an upgraded “SuperPod” system, which is a data center platform designed to connect as many as 15,488 Ascend processors through its new UnifiedBus technology.
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Huawei claims that this setup allows data to move between chips much faster than Nvidia’s NVLink connections. Interestingly, analysts at Bernstein noted that Huawei’s decision to openly discuss its roadmap shows that it is confident in its domestic supply chain, even as the U.S. continues to restrict access to advanced chipmaking tools.
Still, the performance gap is clear, as Huawei’s next-gen Ascend 950 chip is estimated to deliver only around 6% of the power of Nvidia’s upcoming VR200 superchip. Nevertheless, even with these disadvantages, Huawei believes that clustering huge numbers of chips, paired with faster memory and high-speed interconnects, can help it catch up. As a result, Xu predicted that by 2028, the Ascend 970 could deliver interconnect speeds more than double Nvidia’s current technology.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $212 per share implies 17.6% upside potential.
