While Huawei’s latest AI chip aims to challenge Nvidia’s dominance, analysts say a true catch-up could still be years away.

Nvidia (NVDA) shares led losses on the Dow and S&P 500 Monday afternoon following a report China's Huawei Technologies is preparing to test a rival artificial intelligence chip. According to The Wall Street Journal,

The report states that Huawei has recently approached several Chinese technology companies to test the technical capabilities of the new processor. Huawei hopes the Ascend 910D will outperform Nvidia’s high-end H100 AI chip, which is widely considered a benchmark for training sophisticated machine learning models.