Nvidia's China AI Chip Market Share Plunges to 34% as Huawei Closes the Gap

Nvidia's share of China's data-center AI chip market dropped to 34% in the first half of 2026, according to a recent IDC report. The US chipmaker shipped 678,000 AI accelerators to China from January through June, representing a 44% decline from the previous year. Huawei capitalized on the gap, shipping 572,000 AI accelerators to secure a 28% market share—up from just over 300,000 units a year earlier. Shipments of non-GPU AI accelerators surged nearly 80% to 1.016 million units, overtaking traditional GPUs as Chinese suppliers expanded sales to government agencies and telecoms. Alibaba's T-Head captured 7% of the market, followed by Cambricon with 5% and Baidu's Kunlunxin with 4%. "Nvidia CEO Jensen Huang has repeatedly criticised Washington's export curbs, saying the policy forced a US company to cede China's $50 billion AI chip market to Huawei."