SINGAPORE—Huawei Technologies is gearing up to test its newest and most powerful artificial-intelligence processor, which the company hopes could replace some higher-end products of U.S. chip giant Nvidia.

Huawei prepares to test its Ascend 910D AI chip as new US tariffs and restrictions reshape the global semiconductor trade.

In response to US restrictions on chip exports, Chinese companies have been trying to develop their own hardware to power generative AI, but so far, have trailed behind. Now the Wall Street Journal reports that Huawei is not only preparing to ship more of its existing Ascend 910B and 910C chips,