---
title: "Nvidia Is Huawei's 'New Target' "
description: "Chamath Palihapitiya warned that Huawei is employing a \"low-end disruptor\" strategy to compete with Western tech giants like Nvidia, amid escalating U.S.-China tensions. He noted Huawei's success in o"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/237745416.md"
published_at: "2025-04-28T01:25:57.000Z"
---

# Nvidia Is Huawei's 'New Target' 

> Chamath Palihapitiya warned that Huawei is employing a "low-end disruptor" strategy to compete with Western tech giants like Nvidia, amid escalating U.S.-China tensions. He noted Huawei's success in outperforming companies such as Ericsson, Nokia, and Cisco, while also challenging Qualcomm and Nvidia. Palihapitiya highlighted Huawei's advancements in chip manufacturing and its efforts to reduce reliance on U.S. technology by developing in-house chips and launching HarmonyOS-powered PCs. His comments reflect the growing competitive pressure from Chinese firms on the global tech landscape.

**Chamath Palihapitiya**took to X on Sunday to discuss**Huawei’s**strategic approach in the tech industry. Palihapitiya emphasized that Huawei, a prominent Chinese company, has successfully implemented a “low-end disruptor” strategy. This involves creating products that are either equivalent to or better than those of existing market leaders, but at a lower cost.

**What Happened**:The SPAC King identified several companies that Huawei has already outperformed, including**Telefonaktiebolaget LM Ericsson** ERIC,**Nokia** **Oyj** NOK, and**Cisco Systems, Inc.** CISCO. He also noted that Huawei is making progress against**QUALCOMM Incorporated** QCOMand has set its sights on**Nvidia** **Corporation** NVDA. Palihapitiya’s comments come amid growing concerns about China’s technological advancements and their impact on global markets.

> Worth noting that Huawei, a Chinese National Champion, has systematically executed a "low-end disruptor" strategy with a lot of success.
> 
> "Low-end Disruptor" simply means making an equivalent or better product for less than incumbents.
> 
> End bossed:  
> 1\. Ericsson  
> 2\. Nokia  
> 3\. Cisco…
> 
> — Chamath Palihapitiya (@chamath) April 27, 2025

Palihapitiya’s remarks align with recent developments in China’s tech sector, where companies like Huawei are advancing despite international challenges. This includes Huawei’s efforts to develop in-house chips to counter U.S. sanctions, as reported in March.

**Why It Matters**: Palihapitiya’s observations underscore the competitive pressure that Chinese companies are exerting on Western tech giants. Huawei’s strategy of producing cost-effective yet high-quality products is reshaping the competitive landscape. This is particularly relevant as China continues to make strides in chip manufacturing, even without access to advanced tools like those from**ASML Holding**.

Huawei is accelerating efforts to replace U.S. components by developing its own computer chips and operating system, with its **Kirin X90** chip recently earning national security certification. As its Windows license nears expiration, Huawei plans to launch HarmonyOS-powered PCs later this year to reduce reliance on American technology amid rising U.S.-China trade tensions.

Palihapitiya has previously expressed concerns about companies like Nvidia not acting in the best interests of the U.S., highlighting the geopolitical implications of these technological advancements.

### Related Stocks

- [HUAWEI.NA - Huawei](https://longbridge.com/en/quote/HUAWEI.NA.md)
- [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md)
- [MSTR.US - Strategy](https://longbridge.com/en/quote/MSTR.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.