Jensen Huang, founder, chairman and CEO of Nvidia, speaks about the future of artificial intelligence and its impact on energy consumption and production at the Bipartisan Policy Center in Washington, DC on September 27, 2024.
Chip Somodevilla | getty images
NVIDIA Shares remained under pressure on Monday after a Chinese regulator said it is investigating a chip maker over possible violations of the country’s anti-monopoly law.
Shares fell 3%.
The Chinese government said on Monday that the State Administration for Market Regulation has launched an investigation into the chip maker in connection with its acquisition of Mellanox and certain agreements made during the acquisition. Nvidia acquired the Israeli technology company, which makes network solutions for data centers and servers, in 2020.
“In recent days, due to Nvidia’s suspected violations of China’s Anti-Monopoly Law and the restrictive conditions of the State Administration for Market Regulation surrounding the acquisition of Mellanox shares by Nvidia… Nvidia in accordance with the State Administration for Market Regulation Law “Initiating an investigation,” according to a statement translated by CNBC.
The news comes as competition between the US and China over chip manufacturing capabilities intensifies, with the Biden administration announcing final sanctions on December 2. Targeting semiconductor equipment manufacturersThe news could also be a response to rising trade tensions as President-elect Donald Trump prepares to take office in January, promising to impose steep tariffs on foreign goods.
The US has stepped up restrictions on chip sales to China in recent years, blocking Nvidia and other major semiconductor makers from selling their most advanced AI chips in an effort to prevent China from strengthening its military. the company has worked on creating new products To sell in China which follow US regulations.
Shares of the AI ​​chip darling have outperformed this year, rising about 188% as investors bet on the sector more than two years after ChatGPIT’s debut. Stocks, along with the broader technology sector, have also helped push the market to new highs.
Nvidia did not immediately respond to a request for comment.
— CNBC’s Evelyn Cheng contributed reporting.
