Huawei reported its highest annual revenue in five years for 2025, driven by robust demand for artificial intelligence and computing, as well as healthy growth in its smart car solutions business, despite ongoing U.S. sanctions that restrict access to American technologies [1]. The company stated that its overseas business accounted for 30% of total revenue in 2025, underscoring resilient global demand for its products and services [1]. Huawei also spent a record amount on research and development during the year, aiming to maintain its competitive edge and drive innovation [1].
However, Huawei's cloud computing segment showed signs of weakness. Cloud computing revenue from external customers fell by 3.5% in 2025 to 32.16 billion yuan ($4.6 billion), even as overall cloud revenue including internal customers rose by 4.8% to 72.8 billion yuan [2]. The main ICT infrastructure segment, which includes Huawei's self-developed Ascend AI chip solutions, reported revenue growth that slowed to 2.6%, down from 4.9% in 2024, with total ICT revenue for 2025 at 375.01 billion yuan [2]. This slowdown contrasts with double-digit increases in global cloud revenue, including for Huawei's rivals in China such as Alibaba and Tencent. Alibaba reported a 36% increase in segment revenue to 43.28 billion yuan in 2025, while Tencent saw a 22% year-on-year increase in business services revenue [2].
Huawei's push to develop its own AI chip has not yet resulted in the double-digit revenue gains seen by its peers, as Chinese companies strive to narrow the gap with the U.S. on AI technology [2]. The U.S. has restricted Chinese companies' access to advanced Nvidia chips, while Beijing has encouraged tech self-sufficiency [2]. ByteDance and Alibaba reportedly plan to place orders for Huawei's new AI chip, according to Reuters, though ByteDance declined to comment and the other companies did not respond to requests [2].
Globally, spending on cloud infrastructure services rose by 29% in the fourth quarter of 2025, marking the sixth consecutive quarter of market expansion above 20%. Omdia predicts 27% cloud growth in 2026 [2]. Despite Huawei's revenue rebound and strategic pivot towards AI and smart car solutions, its cloud computing segment lags behind rivals amid rapid industry expansion worldwide and slower economic growth in China [1][2].
CONCLUSION
Huawei's overall revenue recovery in 2025 highlights its adaptability and strategic focus on AI and smart vehicles, but its cloud computing segment underperformed compared to major Chinese rivals. The company's continued investment in R&D and efforts to develop proprietary AI chips signal a commitment to innovation, though challenges remain in matching the growth rates of competitors. Market sentiment is cautiously optimistic, with medium impact as Huawei navigates both global opportunities and domestic headwinds.