Nvidia China AI chip share falls to 34% as shipments drop 44%

Nvidia's declining China AI chip shipments and market share come as U.S. export controls continue to restrict the company from selling its most advanced AI chips to China. Beijing also largely balked at the small pool of chips that Washington did approve, limiting the sales that could have offset the decline. Meanwhile, Chinese AI chip major Huawei has been producing competing AI chips, and other local players including Alibaba's chip-design unit T-head, Cambricon, Baidu's Kunlunxin, and Hygon are also producing more advanced chips. In this competitive landscape, Huawei held the largest share of the AI market among Chinese developers at 28%, followed by T-Head at 7%, Cambricon at 5%, Kunlunxin at 4%, and Hygon at 3%. Demand for AI chips has surged in recent years amid increasing efforts by U.S. and Chinese companies to train and release advanced AI models, but Nvidia's ability to serve Chinese customers remains constrained by policy rather than demand.