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

Nvidia's hold on China's data-center AI chip market slipped to 34% in the first half of 2026, according to an IDC report obtained by Reuters. The US chipmaker shipped 678,000 AI accelerators to China, a 44% decrease compared to the previous year, while domestic rivals like Huawei surged ahead. Huawei shipped 572,000 AI accelerators, marking a 28% share of the market.

Alibaba's T-Head and Cambricon claimed 7% and 5% respectively, while Baidu's Kunlunxin and Hygon held 4% and 3% shares. Notably, nine out of the 11 Chinese chipmakers tracked by IDC witnessed an increase in shipments from the previous year. Total AI-accelerator shipments in the first half reached 2.008 million units, with graphics processing units (GPUs) declining by 26% to 991,000 units, overtaken by other AI accelerators in volume.

The category, which includes chips designed for specific AI tasks, saw shipments nearly surge by 80% to 1.016 million units. Notably, Huawei, T-Head, Kunlunxin and Cambricon controlled 95% of this segment, which is gaining traction among government agencies, internet companies, and telecom providers. IDC predicts a 19% growth in total accelerator shipments in China this year, despite a 9% drop in GPU shipments.