Nvidia’s China AI-chip share falls as Huawei closes gap, report finds

Nvidia's dominance in China's AI-chip market dwindled to 34% in the first half of 2026, according to a report by IDC. The decline was primarily driven by US export controls limiting the availability of Nvidia's advanced products and the rapid growth of domestic rivals. Huawei, backed by Beijing's push for local alternatives, witnessed a sharp increase in shipments, reaching 572,000 AI accelerators, up from over 300,000 the previous year.

This surge propelled Huawei's share to 28%, surpassing Nvidia's market presence. Other Chinese chip designers, including Alibaba's T-Head, Cambricon, Baidu's Kunlunxin, and Hygon, collectively claimed 7% to 11% of the market. While total AI-accelerator shipments reached 2.008 million units, the volume of graphics processing units (GPUs) fell by 26%, as supplies eligible for sale in mainland China remained restricted.

GPU shipments declined to 991,000 units, a trend that IDC predicts will continue, even as the overall AI-accelerator market is expected to grow by 19% in 2026.