05:58 AM EDT, 05/24/2024 (MT Newswires) -- Nvidia ( NVDA ) has been forced to lower the prices of its AI chips for the Chinese market in the face of stiff competition from local rival Huawei, Reuters reported Friday, citing unnamed sources.

Nvidia ( NVDA ) is eager to maintain market share in China, which contributed to 17% of its fiscal 2024 revenue, but it faces mounting US restrictions on exports of AI-capable chips, Reuters reported. The company developed three China-specific products last year after the US barred it from exporting its most sophisticated chips.

Reuters cited sources as saying that demand for the chips is weak. The company's most advanced H20 chip is reportedly being sold in some cases at a discount of more than 10% to Huawei's Ascend 910B.

Nvidia ( NVDA ) did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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