Several months ago, Nvidia’s (NVDA) CEO, Jensen Huang, said the chipmaker was assuming 0% market share in China’s advanced AI accelerator market. Now, new data indicates Chinese chipmakers have massively ramped up their presence, controlling nearly half of the market amid U.S. export curbs.
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According to data from the International Data Corporation seen by Reuters, Nvidia’s share of the market dropped to 55% in 2025 after the chipmaker shipped about 2.2 million units of AI accelerator cards to the country, one of the world’s fastest-growing AI markets. However, Chinese chipmakers led by Huawei Technologies and Alibaba’s (BABA) T-Head have now grabbed 41% of the market, shipping 1.65 million cards to customers.
AI accelerator cards are circuit boards containing high-performance chips, memory, and cooling systems. These boards play a key role in powering AI workloads in data centers.
Nvidia’s falling market share in the country comes as the U.S. has been racing to maintain its technological lead over China by limiting Nvidia’s export of its advanced AI chips to the country.
Since October 2022, the Santa Clara, California-based company has faced restrictions on the export of its graphics processing units and technologies to China. This forced the company in June 2025 to exclude sales and profit expectations from the Chinese market from its forecast.
U.S. Doubles Down on AI Export Control
Two months earlier, Nvidia revealed that the U.S. government planned to limit the export of its H20 integrated circuits to China, Hong Kong, and Macau. However, earlier this year, President Donald Trump’s administration cleared Nvidia for the export of its advanced, but not most powerful, H200 chips to China under certain conditions.
Yet efforts by the U.S. government to keep a tight lid on the country’s AI exports remain in place. Federal officials are said to be working on draft legislation to expand rules requiring approval for AI chip exports to all countries.
Is NVDA a Buy Right Now?
On Wall Street, Nvidia’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down to 41 Buys, one Hold, and one Sell assigned over the past three months.
In addition, the average NVDA price target of $273.34 implies about 57% upside.
