Nvidia Faces Antitrust Investigation in China

Published On Dec 9, 2024, 8:03 AM

China has initiated an antitrust investigation into Nvidia, a leading American company in AI chip production, following the U.S. government's recent expansion of technology export restrictions to China. The inquiry is focused on Nvidia's compliance with the conditions set during its acquisition of Mellanox Technologies in 2020. This investigation signals escalating tensions in the tech trade between the U.S. and China, which has been apparent as both nations enforce measures affecting supply chains and advanced technologies.

Stock Forecasts

This investigation could pose significant challenges for Nvidia, possibly impacting its market position and stock performance as uncertainties arise regarding its operations in China. Legal battles or restrictions could also disrupt supply chains. Investors should be cautious, as these developments could lead to a decline in Nvidia's stock price in the short to medium term.

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