Nvidia shares fell 4% on Monday as the company faces fresh competition from China's Huawei Technologies in the artificial intelligence chip sector.

According to a previous report by The Wall Street Journal, Huawei is reportedly testing its new Ascend 910D chip, aiming to surpass Nvidia's H100. Huawei has already started delivering its Ascend 910B and 910C chips to major Chinese tech players, including ByteDance.

After reaching its intraday low, Nvidia's stock declined by 3.56%, falling to $107.11.