Huawei gains ground on Nvidia in China’s AI chip market

Nvidia’s position in China’s AI chip market has weakened as U.S. export controls and Beijing’s push for domestic alternatives reshape demand for advanced computing hardware. Chief Executive Jensen Huang drew public attention during a Beijing visit tied to President Trump’s May summit with Chinese leader Xi Jinping, but that visibility has not translated into stronger sales of Nvidia’s most advanced chips in China.

Washington’s controls initially stalled sales of Nvidia’s advanced H200 AI chips over national security concerns. By the time Trump agreed to allow those sales, Beijing had shifted toward encouraging use of domestically designed chips from local rivals, led by Huawei. Huang said Nvidia had been in China for 30 years and held about 95% market share before export controls barred it from the country.

Since the U.S. in 2019 excluded Huawei, and later China more broadly, from buying some of the world’s most powerful chips and chipmaking equipment, Chinese semiconductor companies have accelerated efforts to build self-sufficiency. Nvidia and AMD continue to dominate the U.S. AI chip sector and much of the global market, while Huawei has gained ground at home as Chinese AI companies including DeepSeek seek better performance and cost efficiency.