Technology

Huawei braces for $12 billion in AI chip revenue driven by homegrown AI model demand — Chinese fabs can barely keep up as Nvidia's market share craters within the region

Source

Tom's Hardware

Published

May 5, 2026

TL;DR

AI Generated

Huawei anticipates $12 billion in revenue from its AI processors by 2026, with a surge in demand driven by major Chinese tech firms like Alibaba and Tencent. Nvidia's market share in China has plummeted to zero percent, with Huawei's Ascend processors becoming the preferred choice for Chinese companies. The success of Huawei's AI chips is attributed to the release of DeepSeek's V4 LLM model optimized for Huawei's architecture. However, Huawei's ability to meet demand relies on SMIC's production capacity, which is currently facing challenges in yield and cycle time. Despite Huawei's advancements in AI chip technology, challenges remain in scaling production and competing with Nvidia's historical dominance in the market.

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Jensen Huang snubbed by White House for President Trump’s China state visit — Nvidia CEO not on roster, which includes Apple's Tim Cook and Elon Musk

Nvidia CEO Jensen Huang was notably absent from the roster of business leaders invited to join President Trump on his state visit to China, despite being a prominent figure in previous visits. The exclusion comes amidst tensions over Nvidia's chip exports to China and the U.S. blocking advanced semiconductors due to military concerns. This move has significantly impacted Nvidia's market share in China, allowing local chipmakers to gain ground. The absence of Huang from Trump's entourage is seen as a strong signal to China regarding the U.S.' stance on high-end AI chips and trade negotiations.

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Amazon employees admit to using AI unnecessarily to pump up internal usage scores — workers complain of intense pressure to use AI tools

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Compromised Mistral AI and TanStack packages may have exposed GitHub, cloud and CI/CD credentials in 'mini Shai Hulud' malware infection — supply-chain campaign spreads across npm and AI developer ecosystems like wildfire

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Dell SupportAssist update is crashing PCs with constant blue screens and reboot loops — the boot service built for system recovery is the culprit of unending instability

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4 hours ago

Jensen Huang snubbed by White House for President Trump’s China state visit — Nvidia CEO not on roster, which includes Apple's Tim Cook and Elon Musk

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Amazon employees admit to using AI unnecessarily to pump up internal usage scores — workers complain of intense pressure to use AI tools

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Compromised Mistral AI and TanStack packages may have exposed GitHub, cloud and CI/CD credentials in 'mini Shai Hulud' malware infection — supply-chain campaign spreads across npm and AI developer ecosystems like wildfire

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3 hours ago

Dell SupportAssist update is crashing PCs with constant blue screens and reboot loops — the boot service built for system recovery is the culprit of unending instability

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4 hours ago

Huawei braces for $12 billion in AI chip revenue driven by homegrown AI model demand — Chinese fabs can barely keep up as Nvidia's market share craters within the region

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Jensen Huang snubbed by White House for President Trump’s China state visit — Nvidia CEO not on roster, which includes Apple's Tim Cook and Elon Musk

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Huawei braces for $12 billion in AI chip revenue driven by homegrown AI model demand — Chinese fabs can barely keep up as Nvidia's market share craters within the region

TL;DR

Similar Articles

Jensen Huang snubbed by White House for President Trump’s China state visit — Nvidia CEO not on roster, which includes Apple's Tim Cook and Elon Musk

Amazon employees admit to using AI unnecessarily to pump up internal usage scores — workers complain of intense pressure to use AI tools

Compromised Mistral AI and TanStack packages may have exposed GitHub, cloud and CI/CD credentials in 'mini Shai Hulud' malware infection — supply-chain campaign spreads across npm and AI developer ecosystems like wildfire

Dell SupportAssist update is crashing PCs with constant blue screens and reboot loops — the boot service built for system recovery is the culprit of unending instability