Nvidia China Market Share Drops to 34 Percent
Nvidia saw its share of China's data-center AI chip market fall to 34 percent as U.S. export controls fueled growth for Huawei.
Nvidia Inc. saw its share of China's data-center AI chip market fall to 34 percent in the first half of 2026, according to data from the International Data Corporation. The company's shipments dropped 44 percent year-over-year to 678,000 units, a decline driven by U.S. export controls on high-performance chips and the rise of domestic Chinese competitors.
Huawei expanded its presence in the market, increasing shipments to 572,000 units to capture a 28 percent market share. Other Chinese firms, including Alibaba's T-Head, Cambricon, Baidu's Kunlunxin, and Hygon, also experienced growth. While GPU shipments fell 26 percent due to limited eligible supplies, other AI accelerators rose nearly 80 percent, with Chinese firms dominating 95 percent of that non-GPU segment.
Nvidia CEO Jensen Huang stated that Washington's export policies have forced the company to cede a $50 billion market to Huawei.
