Nvidia stock fell after a market report put the company's share of China's AI-chip market at 34%, down from a once-dominant position, with Huawei capturing the ground Nvidia lost.

The figure marks the sharpest quantification yet of Nvidia's erosion in one of its largest pre-export-control markets. Huawei, the Shenzhen-based equipment maker, has moved into the gap left by Washington's restrictions on advanced accelerator sales to Chinese customers.

What does the 34% share number signal?

The number carries weight because of what it replaces. Before the US export controls tightened, Nvidia supplied the overwhelming majority of AI accelerators sold in China. A 34% share means Chinese buyers now source most of their AI compute elsewhere, and the report identifies Huawei as the primary beneficiary.

Three points frame the shift:

• Nvidia's China AI-chip share now stands at 34%, according to the report carried by Yahoo Finance.
• Huawei has gained the largest part of the market Nvidia ceded.
• Nvidia shares declined on the news.

The stock reaction was immediate. Investors read the share figure as evidence that the China revenue Nvidia once counted on is not coming back under the current export-control regime.

Why is Huawei gaining?

US export controls block Nvidia from selling its most advanced data-center GPUs to Chinese customers. Huawei has built its Ascend line of AI processors for that domestic demand, and Chinese cloud providers and AI labs have shifted orders toward it.

The result is a structural, not cyclical, change: Chinese buyers are not pausing purchases and waiting for Nvidia. They are buying Huawei silicon.

What does this change for Nvidia's numbers?

China was previously one of Nvidia's largest regional markets. Each percentage point of share lost there translates directly into revenue that flows to Huawei instead.

Nvidia has tried to hold part of the market with downgraded chips that comply with US rules. The 34% figure suggests those compliance parts have not stopped the leakage.

For investors, the report reframes the question. The issue is no longer how much of its China business Nvidia can protect, but how fast Huawei converts domestic demand into a self-sufficient AI-chip ecosystem.

Nvidia stock fell on the report; Huawei's gain is now measurable in market-share points.