Nvidia AI Chip Share in China Drops to 34% as Huawei Gains Ground
NVIDIA Corporation (NVDA) saw its share of China's artificial-intelligence accelerator market fall to 34% in the first half of 2026. The company shipped 678,000 AI accelerators in China during the period, representing a 44% drop compared to the previous year. Shares of Nvidia were down 0.41% to $225.40 following the report.
Strict U.S. export regulations restricting advanced chip shipments, along with tighter local import licensing and Beijing's drive for domestic hardware, have constrained Nvidia's presence in China. Local competitors are rapidly filling the gap. Huawei supplied 572,000 accelerators in the first half of the year, up from over 300,000 a year earlier, boosting its market share to 28%. Other Chinese firms, including Alibaba's T-Head with a 7% share, as well as Cambricon, Baidu's Kunlunxin, and Hygon, also saw shipments expand.
China remains a major market for AI infrastructure. Chief Executive Officer Jensen Huang has previously warned that American export restrictions risk handing market share to domestic rivals like Huawei. Investors will monitor whether Nvidia can defend its reduced footprint with products that remain cleared for export, or if Chinese suppliers will secure lasting market gains.
Key points
- Nvidia shipped 678,000 AI accelerators in China in the first half of 2026, down 44% year-over-year.
- Nvidia's market share in China dropped to 34% due to U.S. export limits and local regulatory restrictions.
- Huawei increased its China AI accelerator shipments to 572,000 units, capturing 28% of the market.
- Nine out of 11 Chinese chipmakers tracked recorded year-on-year shipment gains, including Alibaba's T-Head.
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How we writeDisclaimerQuestions and answers
Why is Nvidia losing market share in China?
Nvidia is losing market share in China due to U.S. export restrictions on advanced chips, stricter Chinese licensing requirements, and government efforts promoting domestic alternatives.
How much did Nvidia AI chip shipments fall in China?
Nvidia supplied 678,000 AI accelerators in China during the first half of 2026, a 44% decline from the same period a year earlier.
Which Chinese companies are gaining AI chip market share?
Huawei increased its market share to 28% by supplying 572,000 accelerators. Alibaba's T-Head captured 7%, while Cambricon, Baidu's Kunlunxin, and Hygon also gained share.