Nvidia shares drop as China opens antimonopoly probe into US chip giant
Nvidia shares drop as China opens antimonopoly probe into US chip giant
China’s top antimonopoly regulator has launched an investigation into Nvidia, sending its shares down by 2.2% in premarket trading.
The State Administration for Market Regulation is probing the chipmaker giant over potential violations of antimonopoly regulations, the watchdog announced Monday.
The probe is reportedly related to Nvidia’s acquisition of Israeli chip firm Mellanox Technologies in 2020. China’s competition authority approved the $7 billion takeover in 2020 on the condition that rivals be notified of new products within 90 days of allowing Nvidia access to them.
The investigation comes as the US-China chip war escalates and after China’s Ministry of Commerce said last week that it would halt shipments of key materials needed for chip production to the US. The ministry said the measures were in response to fresh US chip export bans, which were also announced last week.
Nvidia, which is headquartered in Santa Clara, has also faced antitrust scrutiny in the US. The Department of Justice has been examining whether Nvidia might have abused its market dominance to make it difficult for buyers to change suppliers.
Nvidia did not immediately respond to a B-17 request for comment, made outside normal working hours.
