Nvidia’s dominance in China has diminished as Huawei and other Chinese chipmakers gain ground amid U.S. export controls and China’s push for AI hardware self-sufficiency.

Despite China-specific headwinds, Nvidia still projects a positive broader revenue outlook, with roughly $91 billion expected for the May–July period.

TrendForce forecasts Huawei Technologies, Cambricon Technologies and other Chinese players to capture nearly 80% of China’s AI server market in 2026.

The report draws on AP coverage and includes a China International Supply Chain Expo photo to illustrate mid-2026 industry activity.

The shift in market share is described as one of the fastest declines in semiconductor history, occurring in under five years.

The market shift reflects structural changes in China’s tech ecosystem, including state-backed incentives and procurement policies favoring local hardware.

Geopolitical uncertainty and Beijing’s push for tech self-reliance are accelerating adoption of domestic AI hardware, according to TrendForce.

Domestic Chinese chip suppliers are projected to reach 56% of the market in 2026, up from 46% in 2025.

During a Beijing visit, Jensen Huang was photographed engaging with local developers and consumers, signaling sustained interest despite shifts.

The coverage references multiple external reports and sources, highlighting ongoing market dynamics and strategic moves by Huawei and Nvidia.

Chinese internet companies are contributing 23% of the AI market through domestically designed ASICs, up from 20% previously.

Broader US-China tech frictions are affecting Nvidia’s standing in key markets.