Nvidia China share falls to 34% as Huawei gains

Nvidia’s share of China’s AI chip market fell to 34%, IDC data showed, as Huawei gained ground in a segment shaped by US export controls.

The data points to a narrower position for Nvidia in one of the world’s largest AI infrastructure markets. It also gives Huawei a stronger domestic opening as Chinese buyers face limits on access to Nvidia’s most advanced processors.

Huawei’s opening in China chips

US restrictions have limited Nvidia’s ability to sell its highest-end AI chips into China, pushing the company toward compliant products for the market. IDC data showed Huawei has benefited as customers seek local alternatives for training and inference workloads.

For Nvidia, the immediate company-level issue is whether China remains a meaningful growth channel under tighter controls.

If the 34% share stabilizes, Nvidia can defend part of the market with permitted chips; if it falls further, more Chinese demand may shift to Huawei and other domestic suppliers.

For the wider tech sector, the mechanism is supply-chain substitution. Export controls can redirect orders toward local chip designers, server makers and cloud providers, while forcing global suppliers to redesign products around regulatory limits.

By December 31, 2026, the key test is whether new China-compliant Nvidia chips slow the share loss or whether domestic procurement keeps moving toward Huawei.