Nvidia's China AI-chip share falls to 34%, Huawei reaches 28%

Nvidia's market share in China's data-center AI accelerator market fell to 34% in the first half of 2026, while Huawei's share reached 28%, according to an IDC report. U.S. export restrictions have constrained Nvidia's supplies into China, coinciding with an increase in shipments from Chinese chipmakers.

Nvidia shipped 678,000 AI accelerators in China between January and June, marking a 44% decrease compared to the same period last year. Huawei, in contrast, delivered 572,000 units, a significant rise from over 300,000 shipments in the prior year. These accelerators are crucial for training AI models and running inference tasks.

Alibaba's T-Head accounted for 7% of the shipments, followed by Cambricon at 5%, Kunlunxin at 4%, and Hygon at 3%. The IDC report also indicated that nine out of the eleven tracked Chinese suppliers increased their shipments during the period, suggesting growing domestic competition.