Nvidia Loses AI Chip Market Share in China, Huawei Climbs to 28%

Nvidia is still the largest supplier of data-center AI chips in China, but its lead is narrowing rapidly as domestic chipmakers gain ground.

Key points

• The firm shipped around 678, 000 AI accelerators between January and June, down 44% year over year.
• According to IDC data reviewed by Reuters, Nvidia's share of China's data-center AI chip market fell to 34% in the first half of 2026.
• Alibaba's T-Head accounted for 7% of the market, followed by Cambricon at 5%, Baidu's Kunlunxin at 4%, and Hygon at 3%.
• Nvidia CEO Does Not think AI Will End The World Anytime Shortly.
• That offered Huawei a 28% market share, putting it only six percentage points behind Nvidia.

Meanwhile, the firm shipped around 678, 000 AI accelerators between January and June, down 44% year over year. Huawei Closes the Gap.

Huawei emerged as Nvidia's strongest local competitor during the period. The Chinese firm shipped around 572, 000 AI accelerators, up from just over 300, 000 a year earlier.

That offered Huawei a 28% market share, putting it only six percentage points behind Nvidia. Nine of the 11 Chinese chipmakers tracked by IDC recorded year-over-year shipment expansion.

Nvidia CEO Does Not think AI Will End The World Anytime Shortly. US Restrictions Reshaping the Market.

For context, the shift comes as US export restrictions continue to limit Nvidia's ability to sell some of its most advanced chips in China.

Chinese firms additionally face approval requirements when importing certain Nvidia processors that comply with existing restrictions.

Meanwhile, Beijing has been encouraging local firms to adopt domestically produced chips as part of its broader push for technological self-reliance.

These policies have created more room for firms such as Huawei, Cambricon and other Chinese chipmakers to expand. Nvidia CEO Warns Regarding Losing China.

Nvidia CEO Jensen Huang has repeatedly criticized US export restrictions on advanced AI chips.

He has argued that the restrictions are giving competitors, particularly Huawei, a larger share of China's AI chip market. It he has estimated to be worth roughly $50 billion.

Nvidia had not commented on the latest IDC figures at the time of reporting. Huawei and Qualcomm Just Signed a Patent Licensing Accord. Stay Connected with ProPakistani.

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Taken together, the developments around nvidia Loses AI Chip Market Share in China, Huawei Climbs to 28% point to a situation that is still moving, and the coming days should bring more clarity.