Nvidia shares fall amid antimonopoly probe in China

• Published On: 09 December 2024 at 19:56

Nvidia's shares fell about 2% on Monday after it was revealed that China's antimonopoly regulator is investigating the company for potential violations of competition laws.

This investigation adds to the ongoing scrutiny of foreign businesses in China.

CNBC reports that the State Administration for Market Regulation of China has launched an investigation into Nvidia's acquisition of Mellanox Technologies.

The Chinese government announced the investigation on Monday, focussing on potential antimonopoly issues associated with the transaction.

"In recent days, due to Nvidia's suspected violation of China's anti-monopoly law and the State Administration for Market Regulation's restrictive conditions around Nvidia's acquisition of Mellanox shares … the State Administration for Market Regulation is opening a probe into Nvidia in accordance with law," the spokesperson said.

Nvidia has not commented on the investigation.

This development comes amid rising tensions between the United States and China over semiconductor technology, with the Biden administration recently imposing new restrictions on semiconductor toolmakers, escalating competition between the two countries in the chip manufacturing sector.

The United States has increasingly restricted chip sales to China in recent years, preventing Nvidia and other major semiconductor companies from selling their most advanced AI chips. These actions are intended to prevent China from using such technologies to strengthen its military.

Shares of Nvidia, the AI chip leader, have risen nearly 188% this year as investors increase their bets on the sector, more than two years after ChatGPT's debut.