Nvidia is experiencing a decline in its foothold in China as local chip manufacturers gain ground. In 2025, Chinese data centers acquired around 4 million AI chips, with Nvidia supplying 2.2 million and domestic firms contributing 1.65 million. Although Nvidia remains a leader in the global GPU industry, its presence in the crucial Chinese market has diminished significantly, dropping from 95% to 55% over the last five years. This trend began in 2022 when the U.S. government imposed restrictions on Nvidia's sale of its top-tier chips, such as the A100, H100, and H200, to China. In response, the Chinese government introduced incentives for the establishment of AI data centers, mandating the use of locally manufactured chips to access state support. The primary beneficiary of this shift has been Huawei, which sold 812,000 chips last year, securing approximately 20% of the market share. Other notable Chinese companies involved in developing data center processors include T-Head (affiliated with Alibaba), Kunlunxin (backed by Baidu), and Cambricon. The question remains: could Huawei potentially rival Nvidia on the global stage?
Informational material. 18+.
