Nvidia stock faces China pressure as Huawei gains ground

Nvidia's position in China's artificial-intelligence chip market weakened in the first half of 2026 as export controls limited access to its products and domestic competitors expanded. Reuters reported on October 13, citing an IDC report, that Nvidia held 34 percent of China's data-center AI chip market, down from its earlier dominance.

Nvidia shipped 678,000 AI accelerators in China from January through June, 44 percent fewer than a year earlier, according to IDC. Huawei shipped 572,000 units, up from more than 300,000 a year earlier, lifting its share of the overall market to 28 percent. Alibaba's T-Head held 7 percent, while Cambricon, Baidu's Kunlunxin and Hygon held 5 percent, 4 percent and 3 percent respectively.

Export Controls Reshape Chip Demand

The competitive shift reflects restrictions on Nvidia's most advanced products and Chinese approval requirements for compliant imports. IDC did not specify which Nvidia products were included in its market-share calculation or whether the figures covered chips such as the B200 and B300, which Reuters said are barred from export to China.

China's total AI-accelerator shipments reached 2.008 million units in the first half. GPU shipments fell 26 percent to 991,000 units, while other accelerators rose nearly 80 percent to 1.016 million units and overtook GPUs by volume. IDC expects total accelerator shipments to grow 19 percent this year even as GPU shipments decline 9 percent.

The figures point to a market where system-level performance and domestic supply are becoming more important alongside individual chip performance. Reuters said Huawei, T-Head, Kunlunxin and Cambricon together accounted for 95 percent of China's non-GPU segment, which is being adopted by government agencies, internet companies and telecom providers.

Stock Tracks Broader Risk Debate

The real-time quote of Nvidia stock was 184.96 euros on Lang & Schwarz at 12:07 CET on Friday, October 30, 2026, 3.29 percent below the Xetra close of Thursday, October 29. The comparison uses the previous Xetra session because the October 30 Xetra close had not yet been established at that time.

For investors, the China figures add a regional risk to Nvidia's broader AI infrastructure growth story. Export restrictions can reduce the addressable market, while local alternatives are gaining scale in segments that do not depend on Nvidia's highest-performance GPUs.

The broader market context is the S&P 500, which remains the relevant benchmark for a US-listed technology company.

For more news and analyses on Nvidia stock, investors should watch further disclosures on China sales, export permissions and the competitive position of domestic accelerators.