Nvidia's share of China's data-center AI-chip market fell to 34% in the first half of 2026, according to an IDC report seen by Reuters, as US export controls limited its available products and domestic suppliers gained ground. Nvidia shipped 678,000 AI accelerators from January through June, down 44% from a year earlier, while Huawei shipped 572,000, up from more than 300,000, for a 28% market share. Total accelerator shipments reached 2.008 million units, with GPU shipments falling 26% to 991,000 and other accelerators rising nearly 80% to 1.016 million. Beijing has encouraged domestic alternatives and imposed approval requirements for Nvidia imports that comply with US rules. Huawei has broadened its competitive push with new chipsets and a DeepSeek partnership on open-source software for Ascend chips, while Nvidia CEO Jensen Huang said in May that the company had "largely conceded" the China market.