Nvidia China AI Chip Share Drops to 34% as Huawei Closes Gap

Nvidia's market share in China's data-centre AI chip sector dropped to 34% in the first half of 2026 amid tightening U.S. export controls and Beijing's reluctance to approve lower-tier compliant alternatives. The company shipped 678,000 AI accelerators to China during the six-month period, marking a 44% decline year-over-year. Meanwhile, domestic rival Huawei narrowed the gap by shipping 572,000 accelerators, up from just over 300,000 units in the prior year to capture a 28% market share. Other local competitors, including Alibaba's T-Head, Cambricon, Baidu's Kunlunxin, and Hygon, also expanded their presence.