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

Huawei expects AI processor revenue to rise to about $12 billion in 2026, up from $7.5 billion, on strong demand from Chinese tech firms.

Cloud buyers such as Alibaba, ByteDance and Tencent are ordering Ascend chips tuned for DeepSeek’s V4 model, with the Ascend 950PR emerging as the preferred option.

China’s push to replace Nvidia is gaining momentum as its market share in the country has reportedly fallen to zero.

But supply remains a constraint: SMIC’s limited output, low yields and long production cycles may slow Huawei’s ability to meet demand.