Huawei's High-End Chips to Reach 1.4nm by 2031
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 57 minutes ago
0mins
Source: seekingalpha
- Chip Technology Breakthrough: Huawei announced that its high-end chips are expected to achieve a transistor density of 1.4nm by 2031, marking a significant effort by China to overcome U.S. sanctions, which could enhance its competitiveness in the global semiconductor market.
- New Guiding Principle: At the 2026 IEEE International Symposium on Circuits and Systems, Huawei introduced the τ Scaling Law, aimed at replacing traditional geometric scaling to drive the ongoing evolution of semiconductors and electronic systems, showcasing Huawei's forward-thinking in technological innovation.
- Logic Folding Architecture: The Kirin chips set to launch this year will be the first to adopt the Logic Folding architecture, which is expected to significantly enhance chip performance, further solidifying Huawei's position in the AI chip market, especially against the backdrop of strong demand for local alternatives in China.
- Surging Market Demand: Huawei anticipates a revenue surge of at least 60% from its AI chips this year, driven by strong demand for the Ascend 950PR processor from Chinese companies, reflecting Huawei's rapid rise in the global AI semiconductor market.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 219.510
Low
200.00
Averages
264.97
High
352.00
Current: 219.510
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Historical Buyback Trends: Over the past year, Nvidia has authorized more than $25 billion in stock buybacks, demonstrating a consistent capital return strategy, particularly returning over $41.1 billion to shareholders through buybacks and dividends in fiscal 2026.
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See More
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- Expected Market Volatility: SpaceX stock is anticipated to experience typical post-IPO volatility, particularly after lock-up periods expire when insiders may begin to take profits, while Nvidia could benefit from the influx of capital due to its dominant position in AI infrastructure.
See More
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- Major Holding Dynamics: Coleman increased his stakes in Nvidia and Meta Platforms by 9% and 12% respectively during Q1, while also boosting his positions in Broadcom and Taiwan Semiconductor by 25% and 49%, reflecting an optimistic outlook on AI demand.
- Reduction Strategy: Although Coleman slightly reduced his Amazon holdings by 0.1%, he significantly cut his Microsoft stake by 54%, a major adjustment that may indicate concerns about the company's future performance.
- Long-term Investment Strategy: Tiger Global Management's investment approach emphasizes long-term holding, with Coleman's portfolio not only mirroring individual investors' choices but also showcasing a forward-looking strategy in the rapidly growing AI market.
See More
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- Investment Strategy Adjustment: In the current high-valuation market environment, investors should build a diversified portfolio of stocks and ETFs to navigate potential bear markets and corrections, taking advantage of market pullbacks to enhance portfolio value.
- Stock Recommendations: It is advisable to increase holdings in Nvidia, Amazon, and Walmart during market downturns; Nvidia dominates the data center market with a 90% share, Amazon shows strong growth potential at lower valuations, and Walmart performs well during economic slowdowns, making it a buy at the right price.
See More
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- Major Upgrade with New Architecture: Nvidia's upcoming Vera Rubin architecture will replace the existing Blackwell technology, with inference costs expected to be 10 times cheaper and training costs 4 times lower, unlocking new AI capabilities that will drive future revenue growth.
- Sustained Data Center Build-Out Trend: Nvidia reported $81.6 billion in revenue for Q1 2023, with $75.2 billion from its data center division; despite potential spending slowdowns, major client Alphabet has indicated that 2027 capital expenditures will be significantly higher than in 2026, suggesting AI build-out will continue into 2027.
- Market Underpricing Growth Expectations: Currently, Nvidia trades at about 27 times forward earnings, and if it meets growth projections, it will still trade at that multiple; with revenue boosts from Vera Rubin, 2027 is expected to be another year of remarkable growth for Nvidia.
- Multi-Year Growth Trajectory: While the market tends to focus on short-term performance, investing in Nvidia stock now means getting on board a multi-year growth trajectory, especially with projections indicating that 2027 capital expenditures could exceed $1 trillion.
See More
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- Capital Expenditure Plans: Google plans to invest between $180 billion and $190 billion in capital expenditures in 2026; despite facing high risks, this investment will drive the construction of AI infrastructure and enhance the company's long-term growth potential.
- Advertising Revenue Growth: YouTube's ad revenue rose nearly 11% year-over-year, while Google Search revenue increased by 19%, demonstrating the company's continued strong performance in advertising and further improving its overall financial health.
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See More
