NVIDIA's AI chip sales drop in China

NVIDIA's sales of AI chips in China fell by 44% during the first half of 2026 compared to the same period in 2025, according to data from IDC, as reported by Reuters. The decline reflects a challenging market environment for the company in the region.

NVIDIA's market share decreases

NVIDIA's market share in China for AI accelerators has dropped to 36%, down from a higher position in the previous year. This decline is linked to increasing geopolitical tensions between China and the United States, which are complicating NVIDIA's operations in the country.

CEO warns of China's growing independence

NVIDIA CEO Jensen Huang has stated that restricting access to China could accelerate the development of local alternatives, reducing China's reliance on foreign technology. He emphasized that such restrictions might lead to greater self-sufficiency in the region.

Huawei emerges as a major competitor

Huawei is becoming a significant player in the Chinese AI accelerator market, with a market share of 28% during the first half of 2026. This positions it as a major rival to NVIDIA in the region.

GPU sales decline, non-GPU accelerators rise

Sales of GPUs used in AI accelerators fell by 26% during the period, with 991,000 units sold. In contrast, sales of non-GPU AI accelerators increased by 80%, reaching 1.016 million units sold, indicating a shift in the market.

Local companies dominate non-GPU sales

Companies like Huawei, T-Head (Alibaba), Kunlunxin (Baidu), and Cambricon accounted for 95% of the sales of non-GPU AI accelerators in China. These products are increasingly being adopted by government agencies, major internet companies, and telecommunications providers.