Nvidia AI chip share in China falls as Huawei catches up- Reuters

Nvidia's share of the Chinese artificial intelligence chip market has declined in the first half of 2026, according to a report from Reuters citing IDC. The U.S. company shipped 678,000 AI data center chips to China in the six months to June, a 44% decrease compared to the same period a year ago. This decline saw Nvidia's China market share of AI chips drop to 34%, down from a previous figure.

The decline in Nvidia's market share was primarily due to continued U.S. export controls restricting the company from selling its most advanced AI chips to China. Additionally, Beijing showed limited interest in the small pool of chips that Washington approved, resulting in limited domestic sales. The situation has been exacerbated by Huawei's efforts to produce competing AI chips, as well as other local major players like Alibaba's chip-design unit T-head, Cambricon, Baidu’s Kunlunxin, and Hygon accelerating their chip production.

Huawei currently holds the largest share of the AI market among Chinese developers, accounting for 28%, followed by T-head at 7%, Cambricon at 5%, Kunlunxin at 4%, and Hygon at 3%. The surge in demand for AI chips has been fueled by intensified efforts by both U.S. and Chinese companies to train and release advanced AI models.