TLDR
- Nvidia (NVDA) stock traded 1.29% lower Tuesday after IDC data showed its China AI chip share fell to 34%.
- Nvidia’s China shipments dropped 44% to 678,000 AI accelerators in the first half of 2026.
- Huawei shipped 572,000 chips and holds 28% of the market.
- Non-GPU accelerators now outsell GPUs in China by volume.
- IDC expects China’s total accelerator shipments to grow 19% this year while GPU shipments fall 9%.
Nvidia (NVDA) stock traded 1.29% lower on Tuesday after a new IDC report showed its China data-centre AI chip share fell to 34%. Reuters saw the data, which covers the first half of 2026.
Nvidia shipped 678,000 AI accelerators in China from January to June. That is a 44% drop from the same period last year.
Huawei shipped 572,000 accelerators over the same stretch. A year ago, the figure was just over 300,000.
That gives Huawei 28% of the market, six points behind Nvidia. Total AI accelerator shipments in China reached 2.008 million units.
Other Chinese players are growing too. Alibaba’s T-Head holds 7%, Cambricon has 5%, Baidu’s Kunlunxin has 4% and Hygon has 3%.
Nine of the 11 Chinese chipmakers IDC tracks sold more than they did a year earlier. Alibaba (BABA) fell 0.53% and Baidu (BIDU) slid 1.21% on Tuesday.
Why supply is tight
Washington has limited the Nvidia products that can be sold in China. Chips such as the B200 and B300 are barred from export.
Beijing is pushing from its side as well. Chinese companies must get approval before they import Nvidia chips that meet US rules.
IDC did not say which Nvidia products are in the 34% figure. It also did not say whether the B200 and B300, which have reportedly been smuggled into China, are counted.
Nvidia did not respond to a request for comment. CEO Jensen Huang has often criticized the curbs and says they hand China’s $50 billion AI chip market to Huawei.
GPUs fall behind other chips
GPU shipments fell 26% to 991,000 units in the first half. IDC said supply approved for sale in mainland China stayed limited.
Other AI accelerators jumped nearly 80% to 1.016 million units. They now outsell GPUs in China by volume.
That group covers chips built for set jobs, such as running models that are already trained. Huawei, T-Head, Kunlunxin and Cambricon make up 95% of it.
Government agencies, internet firms and telecom providers are adopting these chips. IDC said competition is moving from single-chip speed to system-level strength, including how well chips work together in a larger cluster.
IDC expects China’s total accelerator shipments to grow 19% this year. It forecasts GPU shipments to fall 9% over the same period.
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