Nvidia’s shares declined 3% after a Chinese regulator opened an investigation into the chipmaker over possible antimonopoly law violations, related to its acquisition of Mellanox in 2020.
The State Administration for Market Regulation is examining Nvidia’s deals with Mellanox and some agreements made during the acquisition. This move comes as competition between the US and China intensifies over chipmaking capabilities, following recent restrictions on semiconductor sales to China. These restrictions were implemented by the Biden administration to limit China from strengthening its military.
Nvidia has tried to comply with US regulations by creating new products for sale in China. Despite this, shares have risen 188% this year as investors focus on the AI chip sector. The company’s performance is also linked to the broader technology market, which has reached new highs.
Source: https://www.cnbc.com/2024/12/09/nvidia-shares-fall-after-china-opens-investigation-over-possible-violation-of-antimonopoly-law.html