Huawei Plans New Smartphone Chip Breakthrough To Challenge Apple and Nvidia

Key Stats for Apple Stock

• Price change for Apple stock: 1%
• $AAPL Share Price as of May. 22: $309
• 52-Week High: $311
• $AAPL Stock Price Target: $309

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What Happened?

Apple (AAPL) stock could be under pressure after Chinese tech giant Huawei announced a major semiconductor breakthrough it calls “LogicFolding” — a new chip-engineering approach designed to push the limits of what’s possible without access to Western chip-manufacturing equipment.

• Huawei claims this technology could deliver capabilities equivalent to 1.4-nanometer chip manufacturing by 2031.
• For context, TSMC — the world’s leading chipmaker and a key Apple supplier — recently began volume production of 2-nanometer chips.
• If Huawei’s claims prove credible at scale, it would significantly narrow the technology gap with Western chipmakers.

The company plans to deploy this technology in its flagship Mate 90 smartphone this fall, directly targeting Apple’s iPhone lineup in China.

This is a familiar threat. Huawei’s 2023 Mate 60 smartphone featured a 5G chip that surprised the industry and helped the company claw back smartphone market share from Apple in China. Apple stock sold off sharply at that time, too.

See analysts’ growth forecasts and price targets…