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

Nvidia's dominance in China's data-center AI chip market has dwindled to 34% in the first half of 2026, according to an IDC report. This decline comes as US export controls have restricted the availability of Nvidia's high-performance AI chips in China and as domestic rivals have made significant strides. Huawei, in particular, has gained ground, claiming a 28% share of the market, up from over 300,000 AI accelerators a year earlier.

Alibaba's T-Head and Cambricon have also increased their market presence, capturing 7% and 5% respectively. The total shipments of AI accelerators in the first half amounted to 2.008 million units, with shipments of graphics processing units (GPUs) falling by 26% to 991,000 units. This shift indicates a growing preference for specialized AI accelerators designed for specific tasks, rather than general-purpose GPUs.

Nvidia CEO Jensen Huang has criticized the US export curbs, arguing that they have allowed Huawei to claim a significant portion of the $50 billion AI chip market in China.