Nvidia's share of China's data-center AI chip market fell to 34% in the first half of 2026, according to IDC. The report attributed the decline to U.S. export controls and intensifying competition from local chipmakers.
Nvidia's AI accelerator shipments to China fell 44% year over year. The company shipped 678,000 units during the six-month period.
Huawei's AI accelerator shipments surged to 572,000 units. The company captured 28% of the market.
The shift highlights how Washington's policies restricting China's access to advanced American technology have spurred Beijing to champion homegrown alternatives.