Huawei's AI Chip Production Surge Challenges Nvidia's Dominance in China

Nvidia's China Nightmare Deepens -- Huawei's Chip Army Is Coming - NVIDIA (NASDAQ:NVDA)

Nvidia's dominance in AI chips just hit a serious test. Huawei is ramping up production at breakneck speed, signaling that the Chinese tech giant isn't just competing -- it's mobilizing a full-fledged "chip army" to challenge Nvidia in its own backyard. Track NVDA stock here. Huawei Doubles Down Huawei plans to double the production of its Ascend 910C AI chips in 2026, targeting about 600,000 units, and scale its Ascend series to around 1.6 million dies overall, reported Bloomberg. This isn't just a volume play -- it's a strategic strike. Beijing-backed subsidies and billions of dollars invested in semiconductor self-sufficiency are giving Huawei a structural edge, allowing it to compete directly with Nvidia's GPUs both in China and potentially in export markets. Its new CloudMatrix 384 cluster, bundling 384 Ascend chips, is already being delivered to domestic clients as a high-performance alternative to Nvidia systems. Read Also: Nvidia Gives. Nvidia Gets. Nvidia Grows -- Jensen Huang's $100 Billion Brainwave Nvidia's Fortress Under Pressure Nvidia still dominates the AI accelerator market globally, but China remains its most lucrative and contested region. Export restrictions limit Nvidia's ability to sell to the country, creating a unique opening for Huawei. Analysts note that while Nvidia enjoys an unmatched software ecosystem, such as CUDA, and a strong developer base, Huawei's chips are gaining traction with cost-conscious enterprises and state-supported cloud infrastructure. The combination of high-volume production, government backing, and aggressive local integration is raising alarms across Silicon Valley. Investor Takeaway For investors, the message is clear: Nvidia's China exposure is riskier than many realize. Huawei's chip ramp is not just a headline -- it's a tangible challenge that could reshape market share in one of the world's largest AI hardware markets. Nvidia remains the global leader in AI, but in China, the landscape is shifting rapidly. Read Next: Alibaba's $53 Billion AI Push Is The Threat Nvidia Can't Ignore Photo: Shutterstock NVDANVIDIA Corp$183.650.99%OverviewMarket News and Data brought to you by Benzinga APIs

Huawei ramps up AI chip production to fill in Nvidia's falling market share in China: report

China-based Huawei plans to nearly double the production of its artificial intelligence chip, the 910C, in 2026 as it attempts to fill in the gaps left in the wake of Nvidia's (NASDAQ:NVDA) dwindling shipments to the country, according to Bloomberg. Huawei's plan to produce more 910C chips aims to fill gaps left by Nvidia and provide needed supply for domestic AI firms, potentially supporting China's AI ecosystem despite lower chip performance relative to Nvidia. Chinese AI companies like Alibaba and DeepSeek face advanced chip shortages due to Nvidia's halt, possibly slowing training and deployment of AI models until local alternatives scale up. Huawei's Ascend 950 chip offers only 6% of the performance of Nvidia's upcoming VR200, lagging significantly behind Nvidia's chips.