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In China, the process of chip substitution with domestic production is accelerating.
Nvidia's share of the Chinese data center AI accelerator market fell to 34% in the first half of 2026, while Huawei narrowed its gap to 28%. TS Lombard argues that US export restrictions are accelerating the development of China's domestic AI ecosystem. An unintended consequence of restricting China's access to Nvidia technology could be the emergence of Nvidia's next major competitor.
In China, the process of chip substitution with domestic production is accelerating.
Nvidia's share of the Chinese data center AI accelerator market fell to 34% in the first half of 2026, while Huawei narrowed its gap to 28%. TS Lombard argues that US export restrictions are accelerating the development of China's domestic AI ecosystem. An unintended consequence of restricting China's access to Nvidia technology could be the emergence of Nvidia's next major competitor.
