Huawei Technologies has introduced the CloudMatrix 384 at the World Artificial Intelligence Conference 2025 in Shanghai. We’re talking about a new AI supercomputing system built with 384 Ascend 910C processors. The company says the system delivers double the computing power of Nvidia’s (NVDA) GB200 NVL72.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Huawei’s system uses a peer-to-peer architecture connected through an optical interconnect backbone. This design enables high-speed, low-latency data transfers across 16 racks. Each rack includes 32 AI chips, and the system uses more than 6,900 optical transceivers to reach an internal bandwidth of over 5.5 petabits per second.
The CloudMatrix 384 also includes 49.2 terabytes of high-bandwidth memory, more than three times the amount of memory found in Nvidia’s comparable platform. Memory bandwidth exceeds 1,200 terabytes per second, which is more than double what Nvidia offers. However, the system uses about four times more power, at 559 kilowatts.
U.S. Curbs Fuel Huawei’s Rise in China
Due to U.S. export controls, Nvidia is barred from selling advanced AI chips, such as the H100 and Blackwell, to Chinese firms. These rules have opened the door for Huawei to expand its domestic market share. Analysts expect Huawei’s share of China’s AI chip market to grow from 23% to 28% in 2025.
China’s total AI chip spending is projected to reach between $36 billion and $39.5 billion this year. Broader capital expenditures in AI infrastructure, including data centers and servers, are expected to total about $91 billion. Major Chinese companies such as Alibaba (BABA) and ByteDance are investing heavily in AI computing.
Despite Huawei’s performance gains, its products are unlikely to compete outside China. The U.S. Commerce Department has warned that using Huawei’s Ascend chips in global markets could violate export laws. This limits Huawei’s reach and helps preserve Nvidia’s position in international markets.
Nvidia Still Leads the Global Market
For now, Nvidia maintains its lead outside of China. Still, investors may want to watch China’s domestic developments. Huawei’s progress shows how export policy is shaping the AI supply chain across global regions. Nvidia’s stock has remained strong despite restrictions. According to TipRanks’ data, the stock holds a Smart Score of 8 and a strong buy Consensus among Wall Street analysts. Investor focus may remain on Nvidia’s global data center exposure, though China’s rising chip self-sufficiency is becoming harder to ignore.
What Is the NVDA Stock Price Target?
On the Street, Nvidia boasts a Strong Buy consensus, with an average NVDA stock price target of $184.91. This implies a 6.58% upside.
