Key Takeaways
- Nvidia's market lead over Huawei in China's AI accelerator market has shrunk by 80% in a year.
- Huawei's Ascend chips now hold a 28% market share, just 6 percentage points behind Nvidia.
- IDC reports Huawei shipped 572,000 Ascend chips in the first half of 2026.
Nvidia's dominance in China's AI accelerator market is facing a significant challenge, with the company's lead over Huawei shrinking by 80% in just one year, according to industry data.
According to IDC, Huawei's Ascend chips have made substantial inroads, securing a 28% market share in the first half of 2026, compared to Nvidia's 31% share from the same period last year.
This narrowing of the gap comes as Nvidia's CEO, Jensen Huang, has repeatedly warned about the company potentially losing its grip on the US$50 billion AI chip market in China.
Huawei's Ascend chips, which are designed for AI acceleration, have seen a surge in demand, with the company shipping 572,000 units in the first half of 2026, up significantly from previous years.
The market dynamics are shifting, with Huawei's aggressive push into AI chip technology contributing to this narrowing of the gap between the two tech giants.
Nvidia's concerns about losing ground in China's AI chip market are now more pressing than ever, as Huawei's market share has nearly halved the difference between the two companies in just a year.
The competition between Nvidia and Huawei in the AI chip market is intensifying, with both companies investing heavily in research and development to maintain their positions.
