Huawei Captures 40% Market Share in China's AI Chip Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy NVDA?
Source: CNBC
- Market Share Competition: Analysts indicate that Huawei and Nvidia each hold about 40% of the sales value in China's AI processor market, with projections suggesting Huawei's share could rise to 50% under favorable policy changes, significantly enhancing its dominance in the domestic market.
- Technological Innovation Leadership: Huawei's Ascend series of AI chips has expanded in recent years, with plans to launch the next-generation Ascend 950 in 2026; while these chips may not match Nvidia's top products in performance, their full-stack solutions surpass competitors on multiple levels.
- Production Capacity Constraints: Newly listed AI chip firms like Moore Threads rely on external foundries for chip production, and the limited capacity of Semiconductor Manufacturing International Corp. has prioritized Huawei's production, thereby constraining the market expansion capabilities of other companies.
- Private Strategy Maintenance: Despite Huawei's clear dominance in the AI chip sector, analysts do not expect the company to go public soon, as founder Ren Zhengfei prefers to maintain internal control and avoid shareholder accountability, resulting in a relatively low capital demand compared to smaller competitors.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.080
Low
200.00
Averages
264.97
High
352.00
Current: 182.080
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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