China's AI Chipmakers Hike Prices 20-50% as HBM Shortage Squeezes Nvidia Alternatives
NVDA sits 36% above its 52-week low of $164.27.
Summary
Chinese AI chipmakers including Huawei and Cambricon have raised prices for AI accelerators by 20-50% in two months, driven by soaring costs for high-bandwidth memory (HBM). Huawei's Ascend 950DT now lists above 250,000 yuan, while older models like the 950PR and 910C are up about 30%. The HBM shortage, exacerbated by U.S. export controls, is forcing Chinese firms to pay several times more for grey-market memory, squeezing their ability to compete with Nvidia. This development highlights the cost disadvantage of domestic alternatives and may slow China's push to replace Nvidia products, potentially reinforcing Nvidia's competitive moat. Micron, as a major HBM supplier, is also directly affected by the shortage dynamics. Watch for further price escalation or supply allocation shifts as the shortage persists.
At the time of this announcement, NVDA was trading at $223.67 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.4T. The 52-week trading range was $164.27 to $236.54. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.