Nvidia Stock Falls as China AI-Chip Share Drops to 34% and Huawei Gains Faizan Farooque Tue, October 13, 2026 at 11:52 AM EDT NVDA -0.19% 688256.SS +0.47% BABA -0.09% 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 Corp. (NVDA, Financials), the leader in artificial-intelligence accelerators, is losing market share in China to local chipmakers because of U.S. export restrictions.Nvidia supplied 678,000 AI accelerators in China in the first half of 2026, a 44% decline from a year earlier, the article said, citing IDC statistics. Its market share dropped to 34%.While Huawei supplied 572,000 accelerators, up from more than 300,000 a year earlier, giving it 28 percent of the market. That deficit is becoming worryingly close.Of the 11 Chinese chipmakers tracked by IDC, only two saw a year-on-year decline in shipments. Alibaba's T-Head acquired 7% of the market while Cambricon, Baidu's Kunlunxin and Hygon all gained share.The change is notable since China continues to be a big market for AI infrastructure.China has pushed homegrown alternatives and imposed stricter licensing requirements for imports of U.S.-compliant Nvidia goods, while also limiting the shipment of Nvidia's most sophisticated chips to China.CEO Jensen Huang has consistently stated that those limits might cede more of China's AI chip business to Huawei.The next test is whether the company can consolidate its position with items it is still authorized to sell, or whether domestic Chinese suppliers continue to leverage regulation constraints into enduring market-share gains.
