Nvidia’s share of China’s data-center AI chip market fell to 34% in the first half of 2026, according to data reported on October 13, 2026. The decline occurred as U.S. export restrictions limited the company’s ability to ship AI accelerators into China and competition from domestic firms, including Huawei, increased.

Nvidia shipped 678,000 AI accelerators in China during the period, a 44% drop from the previous year. Huawei shipped 572,000 units in the same timeframe and secured 28% of the market. Total AI-accelerator shipments across China reached 2.008 million units, showing continued demand even under supply limits.

Graphics processing unit shipments declined 26% to 991,000 units. These chips form a key part of systems used for training and running artificial intelligence models. Nvidia designs GPUs, data-center systems, and networking solutions and maintains a leading global role in accelerated computing and AI infrastructure.

The shift reflects the combined effect of export controls and stronger local competition. Huawei’s expanded shipments placed it closer to Nvidia in the Chinese market for data-center AI chips. Overall market volume remained substantial despite the constraints on certain products.