US-China tech tensions are really affecting Nvidia more than Huawei and the former has lost in the Chinese AI chip sales market this time, as the Ascend chipset maker gained ground. The foreign firm is also facing a decline in its overall revenue.
According to the reports, Nvidia AI chip sales have slipped significantly in the Chinese market as Huawei took over the lead. Besides the rivalry, the US-China tech trade war is the major reason behind the company’s downfall in its most important markets.
Details reveal that Nvidia’s revenue in China is just 9% of its total at present. As a result, investors are now looking for an alternative to Nvidia as it’s losing global dominance.
While the US export controls have allowed Nvidia to sell certain AI chips in China, the Beijing authorities are now aggressively phasing out foreign products, focusing on native companies and pushing for a self-sufficiency path.
Chinese companies like Huawei, CXMT, and more are capturing the Chinese AI market rapidly. The CEO of Nvidia, Jensen Huang, said that the US has lost its game in China’s advanced AI chip market following its strict tech trade regulations.
“Well, we were in China for 30 years, and before the export control banned Nvidia out of China, we had about 95% market share, and so we were competing just fine,” – said Jensen Huang in an interview with The Associated Press.
A report by Bernstein says that Nvidia earned 40% of the Chinese AI chip market share in 2025, matching Huawei. But this year, the US chipmaker can slip to 8%, while the Chinese OEM could grow to 50% in the market share.
Huawei is now up with major AI chip solutions, giving strong competition to rival brands. It is even planning to expand the Ascend chipset’s reach outside China. How well things turn out for the company is worth looking forward to!
(Image Credits: Huawei Blog)
