Huawei Captures 50% of China's AI Chip Market as Nvidia Plunges to 8%, Bernstein Data Shows

According to The Economist citing Bernstein research on Tuesday (July 14), China's AI chip market has undergone a dramatic reversal in just three years. Huawei now leads with approximately 50% market share and $12.1 billion in annual sales, while Nvidia's compliant chip shipments have plummeted to just 8% with roughly $2 billion in sales—down from near monopoly status three years ago. AMD follows with 12% market share and $3 billion in sales.

The shift stems largely from U.S. export restrictions imposed since October 2022, which cut off stable supplies of advanced Nvidia chips and forced Chinese tech companies and AI labs to transition to domestic alternatives. This "forced substitution demand" has created a near-vacuum market space for Huawei's Ascend processors and other homegrown solutions.