Nvidia loses ground in China as Huawei advances

Nvidia’s AI chip business in China has stalled as U.S. export controls and Beijing’s support for domestic suppliers shift demand toward local rivals led by Huawei. Jensen Huang said Nvidia had about 95% market share in China before the restrictions, but acknowledged that Chinese competitors have become “giants” in the country’s advanced AI chip market.

Huawei has made major gains since the U.S. in 2019 restricted its access, and later China’s access, to some of the world’s most powerful chips and chipmaking equipment. Bernstein estimated Nvidia had about a 40% market share in China’s AI chips market in 2025, roughly matched by Huawei, and predicted Nvidia’s share will shrink to around 8% this year while Huawei’s will likely grow to about 50%.

Nvidia remains important to Chinese AI developers because demand for advanced chips still exceeds local supply, and analysts say cutting-edge work such as training models like DeepSeek’s still relies on Nvidia technology. Nvidia expects around $91 billion of revenue in May-July, up from nearly $82 billion in the previous quarter, excluding any data center compute revenue from China.