Nvidia's China AI Chip Share Drops to 34% as Huawei Gains
Nvidia's share of China's data center AI chip market fell to 34% in the first half of 2026. US export curbs and gains by domestic rivals contributed to the decline in shipments.
Nvidia's share of China's data center AI chip market declined to 34% in the first half of 2026, according to a report by International Data Corporation (IDC).
The U.S. chipmaker's shipments of AI accelerators decreased by 44% year-on-year, reaching 678,000 units. This decline was attributed to U.S. export restrictions limiting supply and increased competition from Chinese domestic companies.
Huawei, the Shenzhen-based technology firm, shipped 572,000 AI accelerators, capturing a 28% market share. China has been promoting domestic alternatives and requires companies to obtain approval before importing Nvidia chips that comply with U.S. regulations.
AI accelerators include graphics processing units (GPUs) and specialized chips like application-specific integrated circuits (ASICs) and neural processing units (NPUs). While GPU shipments fell 26%, shipments of other AI accelerators rose and surpassed GPUs in volume. IDC forecasts total accelerator shipments in China to grow 19% in 2026, even as GPU shipments are expected to decline by 9%.