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.

The chip, dubbed Ascend 910D, will be Huawei's most powerful AI processor to date according to a report from the Wall Street Journal.

While Huawei’s latest AI chip aims to challenge Nvidia’s dominance, analysts say a true catch-up could still be years away.