Nvidia Shares Dip as China Launches Antitrust Probe into Mellanox Deal

Nvidia Faces Antitrust Investigation in China, Shares Decline

Nvidia, the leading graphics chip manufacturer, saw its shares decline following reports of an antitrust investigation in China. The probe, initiated by China’s State Administration for Market Regulation, focuses on Nvidia’s $6.9 billion acquisition of Mellanox Technologies in 2019, which had previously received approval from Chinese regulators.

The investigation is part of a broader regulatory examination of Nvidia’s business practices globally. Chinese authorities are reportedly concerned about potential violations of the conditions set during the initial approval in 2020, which included measures to prevent product combination and discrimination against Chinese firms.

This scrutiny in China coincides with increased regulatory actions in other major markets. In the United States, the Biden administration recently imposed new restrictions on chip exports to China, while the Department of Justice is investigating Nvidia for potential antitrust violations. Simultaneously, European Union regulators are examining the company’s sales practices.

Nvidia has not immediately commented on the Chinese investigation. However, in response to U.S. investigations, the company has emphasized its commitment to compliance and innovation.

Despite these regulatory challenges, Nvidia’s stock has demonstrated remarkable resilience, surging nearly 190% in 2024. This investor enthusiasm is largely attributed to the company’s advancements in AI technology and the anticipated release of its next-generation chips, Blackwell and Rubin.

As global regulators intensify their scrutiny of tech giants, the outcome of these investigations could have significant implications for Nvidia’s operations and the broader semiconductor industry.