Nvidia stock faces China setback as Huawei reaches 28% share

Nvidia's position in China's data-center AI-chip market weakened in the first half of 2026 as export restrictions limited supply and domestic competitors gained ground. The Edge Malaysia, citing Reuters and an IDC report, published the figures on Monday, November 2, while the underlying market period ran from January through June.

China Market Share Under Pressure

IDC put Nvidia's share of China's data-center AI-chip market at 34%. The company shipped 678,000 AI accelerators during the six-month period, down 44% from a year earlier. The report did not specify which Nvidia products were included or whether the figures covered the latest restricted-generation chips.

Huawei shipped 572,000 accelerators, up from more than 300,000 a year earlier, and held 28% of the overall market. Alibaba's T-Head accounted for 7%, Cambricon for 5%, Baidu's Kunlunxin for 4% and Hygon for 3%. Nine of the 11 Chinese chipmakers tracked by IDC increased shipments year on year.

Export Rules Reshape Demand

US export controls have narrowed the range of Nvidia products available in China, while Beijing has promoted domestic alternatives and required approval for compliant Nvidia-chip imports. Chief Executive Jensen Huang has repeatedly criticized the restrictions, arguing that they force a US company to surrender opportunities in China's AI-chip market to Huawei. Nvidia did not respond to Reuters' request for comment cited in the report.

The broader market is also shifting beyond conventional GPUs. Total AI-accelerator shipments in China reached 2.008 million in the first half. GPU shipments fell 26% to 991,000, while other accelerators rose nearly 80% to 1.016 million. Huawei, T-Head, Kunlunxin and Cambricon together accounted for 95% of the non-GPU segment, which IDC said was being adopted by government agencies, internet companies and telecommunications providers.

Growth Outlook Meets China Risk

IDC expects total Chinese AI-accelerator shipments to grow 19% in 2026, even as GPU shipments decline 9%. The report said competition is moving toward system-level performance, including how efficiently chips operate in larger computing clusters. For investors, the figures highlight a China risk alongside Nvidia's continuing dependence on demand for advanced AI infrastructure.

The real-time quote of Nvidia stock showed Nvidia stock trading at 185.23 euros on Lang & Schwarz at 11:53 CET on Monday, November 2, 2026, 1.11 percent above the Xetra close of Friday, October 30.

The broader US market backdrop is available in the current market reports.

More news and analyses on Nvidia stock provide further coverage of the company's China exposure, AI demand and upcoming results.