Nvidia and AMD Face Fresh China Threat as AI Buyers Shift to Local Chips
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Nvidia and AMD Face Fresh China Threat as AI Buyers Shift to Local Chips Nauman Khan Tue, July 7, 2026 at 12:54 PM EDT 1 min read AMD This article first appeared on GuruFocus . Nvidia ( NASDAQ:NVDA ) and Advanced Micro Devices ( NASDAQ:AMD ) could face increasing competition in China as businesses plan to allocate a larger share of their artificial intelligence chip spending to domestic suppliers over the next year. The survey of 60 executives across software, finance, manufacturing, and retail industries found respondents expect to direct 46% of AI chip budgets to Chinese vendors over the next 12 months, up from about 30% currently. Many participants also indicated AI infrastructure projects are exceeding planned budgets. Warning! GuruFocus has detected 9 Warning Signs with AMD. Is AMD fairly valued? Test your thesis with our free DCF calculator. Chinese chipmakers, including Huawei, Hygon, and Cambricon, are expected to benefit from the spending shift. The survey also said major technology companies such as Tencent (TCEHY) and Alibaba ( NYSE:BABA ) continue expanding AI infrastructure, while startup Z.ai is evaluating the development of its own AI processors to support growing demand. Nvidia and AMD chips remain in use across China, but their market share may come under pressure as domestic alternatives gain traction and access to foreign AI processors becomes more constrained.
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