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Nvidia's China AI Chip Market Share Drops to 34% as Huawei Gains

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Nvidia's share of China's data center AI chip market declined to 34% in the first half of 2026, according to an IDC report. Its accelerator shipments to China fell 44% year-over-year to 678,000 units during that period. Meanwhile, Huawei's shipments nearly doubled to 572,000 units, capturing 28% of the market and significantly closing the gap. The shift is attributed to U.S. export controls limiting Nvidia's advanced chips and China's push for semiconductor self-sufficiency. Huawei and other domestic suppliers like Alibaba's T-Head and Cambricon collectively increased their market presence.

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