Nvidia Loses Ground in China as AI Chip Shipments Plunge 44% Nauman Khan Tue, October 13, 2026 at 8:23 AM EDT NVDA -1.29% BABA -0.53% 688256.SS +0.47% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Nvidia's lead in China's data-center AI chip market narrowed in the first half of 2026, with Huawei moving within six percentage points as export limits and local competition reshaped the field, according to an IDC report reviewed by Reuters.
Nvidia (NVDA) shipped 678,000 AI accelerators in China from January through June, down 44% year over year and equal to 34% of the market. Huawei shipped 572,000 units, up from more than 300,000 a year earlier, securing 28% share. Nvidia shares fell 1.29% in Monday trading.
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Domestic suppliers are also building positions. Alibaba's (BABA) T-Head business held 7%, Cambricon had 5%, Baidu's (BIDU) Kunlunxin captured 4%, and Hygon accounted for 3%. Nine of 11 Chinese chipmakers tracked by IDC increased shipments from a year earlier.
China's broader AI accelerator market reached about 2.008 million units in the first half. Non-GPU accelerators rose nearly 80% to 1.016 million units, exceeding GPU shipments of 991,000, which fell 26%. IDC expects total accelerator shipments to grow 19% in 2026, while GPU shipments may decline 9%, suggesting demand is shifting across chip designs.
