According to a report issued by a renowned equity research firm, NVIDIA's dominance in China's AI chip market is set for a dramatic downturn, with its market share projected to plummet to a mere 8% by 2026. In stark contrast, domestic players like Huawei are poised for significant growth. Specifically, Huawei is expected to capture a commanding 50% share of the market, with AMD trailing in second place at 12%, and Cambricon potentially securing the third spot.

The backdrop to these developments is the imposition of restrictions on the export of high-end AI GPUs to China. Reflecting on this, NVIDIA's CEO, Jensen Huang, has acknowledged that sales have come to a standstill, with the looming possibility of zero sales in the upcoming two quarters. He further highlighted that the scale of China's AI chip market is anticipated to surge from $50 billion to $200 billion. However, he lamented the fact that American companies would be sidelined from this burgeoning opportunity.