Huawei's AI chip revenue expected to surge 60% as orders for Ascend 950PR chip surge amid Nvidia stall in China
According to Financial Times sources, Huawei expects its AI chip revenue to reach approximately $12 billion in 2026, a 60% increase from $7.5 billion in 2025. The growth is driven by surging orders for its Ascend 950PR chip as Nvidia faces restrictions in accessing the Chinese market.
Huawei's AI Chip Growth
Huawei expects AI chip revenue to hit ~$12B in 2026, up 60% from $7.5B in 2025, as orders for its Ascend 950PR chip surge and Nvidia stalls in China.
Market Dynamics
The sharp increase reflects Huawei's competitive positioning in China's domestic AI chip market as global supply chain pressures and geopolitical tensions reshape semiconductor procurement patterns. With Nvidia facing export restrictions and trade barriers, Chinese companies are increasingly turning to domestic alternatives like Huawei's solutions.
Strategic Implications
This development underscores the emerging semiconductor bifurcation between U.S. and Chinese markets, with each region developing distinct technology ecosystems. Huawei's success in capturing this demand demonstrates the viability of indigenous AI chip architectures, though the company still faces technical performance gaps compared to leading international competitors.