Shift in China's AI Chip Market Dynamics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Source: seekingalpha
- Market Share Shift: By 2025, Chinese GPU and AI chip makers captured 41% of the AI accelerator server market, significantly narrowing Nvidia's once-dominant position, indicating the rapid rise of local companies in market competition.
- Shipment Data: Total shipments of AI accelerator cards by Nvidia, AMD, and Chinese chipmakers reached approximately 4 million units in 2025, with Nvidia shipping nearly 2.2 million cards for a 55% market share, reflecting a decline from its previous dominance amid increasing competition.
- Local Vendor Performance: Huawei led among Chinese vendors with approximately 812,000 AI chips shipped, accounting for nearly half of all local branded shipments, showcasing its strong influence in the domestic market.
- Policy Incentives: In 2025, Beijing unveiled a new wave of AI infrastructure spending, with local governments boosting intelligent computing centers, many of which carried implicit directives to “buy Chinese,” further promoting the use of domestic chips.
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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: 194.970
Low
200.00
Averages
264.97
High
352.00
Current: 194.970
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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