Nvidia loses ground in China as Huawei gains in AI chips

Nvidia’s AI chip business in China has stalled as US export controls and Beijing’s push for domestic technology reshape the market. Washington’s restrictions initially blocked sales of Nvidia’s advanced H200 AI chips, and by the time President Donald Trump agreed to allow them, Chinese authorities were encouraging local companies to use chips designed by domestic suppliers led by Huawei.

Jensen Huang said Nvidia had operated in China for 30 years and held about 95 per cent market share before export controls disrupted its position. Bernstein estimated Nvidia had about a 40 per cent share of China’s AI chips market in 2025, roughly matched by Huawei, and predicted Nvidia could fall to around 8 per cent this year while Huawei rises to about 50 per cent.

Huawei’s Ascend 950 series is viewed by some analysts as roughly comparable to Nvidia’s H200, though Nvidia’s most advanced chips still lead in key areas. Chinese developers, universities and major technology companies continue to seek Nvidia hardware, including for research and development, while DeepSeek has adapted its latest V4 AI model for Huawei’s Ascend chips. Nvidia’s global business remains strong, with expected revenue of around $91 billion in May-July, up from nearly $82 billion in the previous quarter.