Huawei's shipments of AI chips (processors built to train and run machine-learning models) nearly doubled, and the company now holds 28% of the Chinese market for those chips, according to a report cited by Benzinga. Nvidia is losing ground in what was one of its largest revenue pools.

The number matters. A 28% share for Huawei means Beijing's push to substitute domestic silicon for US-designed hardware is no longer theoretical. It shows up in shipment counts.

Nvidia has not commented publicly on the figures as reported. The report does not break out absolute unit volumes, so the near-doubling refers to growth in Huawei's shipments rather than a stated chip count.

What does this change for Nvidia?

China has been a critical market for the Santa Clara-based chipmaker, and US export controls (government restrictions on selling advanced technology to certain countries) have already curtailed which of its products it can legally sell there. Huawei's gains compound that pressure from the demand side.

The practical question for Nvidia investors and customers: if Huawei can capture more than a quarter of the Chinese AI chip market while under its own US sanctions, Nvidia's addressable business in China shrinks further — regardless of any future easing of export rules.

For Chinese buyers, the calculus shifts too. A domestic supplier shipping at roughly double its previous volume shortens wait times and reduces exposure to Washington's licensing decisions.

Why Huawei's share is rising now

The report attributes the shift to shipment growth rather than price cuts or a single flagship product win. Three factors frame the context:

• US export controls have restricted Nvidia's most advanced data-center GPUs (the chips used in AI servers) from the Chinese market.
• Huawei has expanded production of its own AI accelerators despite being on a US entity list since 2019, which limits its access to American manufacturing tools.
• Chinese cloud providers and AI developers have faced government pressure to source domestically where possible.

The reported figures cover the China market specifically. They do not reflect Nvidia's global position, where it still dominates AI training hardware.

What to watch next

Two numbers will tell the story going forward: whether Huawei's share climbs past the reported 28%, and whether Nvidia discloses further China revenue erosion in its quarterly filings. US regulators could also tighten or loosen export rules, either outcome moving market shares quickly.

The report cited by Benzinga did not specify the measurement period for the near-doubled shipments or the 28% share figure.