Nvidia's AI chip sales stall in China as domestic chipmakers led by Huawei overtake global leader in home market

Nvidia's AI chip sales have stalled in China as domestic competitors led by Huawei have overtaken the U.S. company in its home market, according to a report by The Associated Press on June 29, 2026. U.S. export controls on advanced technology initially blocked sales of Nvidia's H200 AI chips in China. By the time President Donald Trump agreed to allow their sale, Beijing had shifted toward encouraging use of domestically designed chips from local rivals led by Huawei. A report by Bernstein estimated Nvidia held about 40% of China's AI chip market in 2025, roughly matching Huawei. Bernstein predicted Nvidia's share will shrink to around 8% in 2026 while Huawei's could grow to about 50%. Nvidia CEO Jensen Huang acknowledged the U.S. has lost its edge in China's advanced AI chip market. "Well, we were in China for 30 years, and before the export control banned Nvidia out of China we had about 95% market share," Huang told the AP. Huawei's Ascend 950 series chips are roughly comparable to Nvidia's H200, analysts said. Nvidia's global sales continue to expand as AI demand surges, with the company expecting about $91 billion in revenue for May through July.