AI raises those stakes even further, with its increased privacy and data security concerns, as well as its potential market size. Huawei’s threat to Nvidia mirrors the threat it posed to Cisco. And with a $25 billion R&D budget, armies of well-trained engineers, and the support of the Chinese government, Huawei has enormous market power.

Nvidia CEO, Jensen Huang, has raised concerns with US lawmakers about Huawei Technologies' expanding artificial intelligence (AI) capabilities.

Chinese tech giant Huawei is reportedly ready to test a new artificial-intelligence chip to compete with Nvidia — but the U.S. chipmaker shouldn’t be too concerned, according to one analyst.