Idc report reveals shift in china's AI chip market as Huawei gains ground

According to an IDC report cited by Reuters, NVIDIA's market share in China's data center AI chip market dropped to 34% in the first half of 2026, down from previous levels. This decline is attributed to U.S. export restrictions limiting NVIDIA's product supply, while domestic competitors expanded their presence. NVIDIA's shipments of AI accelerators in China fell by 44% to 678,000 units during the first half of 2026 compared to the same period in 2,025. CEO Jensen Huang criticized U.S. restrictions, claiming they are pushing NVIDIA out of the $50 billion AI chip market in China, handing it over to Huawei. IDC did not specify which products contributed to NVIDIA's 34% share, nor did it clarify if advanced chips like the B200 and B300 were included. Nine Chinese chip manufacturers saw growth, with Huawei leading the charge. Huawei shipped 572,000 AI accelerators, a significant increase from over 300,000 units in the same period last year, capturing a 28% market share. Other domestic firms also gained ground, with T-head at 7%, Cambricon at 5%, Baidu Kunlun Chip at 4%, and Hygon at 3%.