Nvidia Hit With China Probe in Global Tech War Escalation

Published On Dec 9, 2024, 12:05 PM

Nvidia Corporation is facing an investigation from China's State Administration for Market Regulation over potential anti-monopoly violations related to its 2020 acquisition of Mellanox Technologies. This inquiry is part of the ongoing tech rivalry between the U.S. and China. Nvidia, which generates about 15% of its revenue from China, has seen its stock rise significantly due to high demand for AI chips. The company has expressed its willingness to cooperate with regulators but is under scrutiny for potentially monopolistic practices. Shares of Nvidia fell by 3.7% in response to the news.

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Stock Forecasts

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Negative

The investigation into Nvidia by Chinese authorities adds uncertainty to its operations in a key market, potentially affecting revenues from a significant customer base. Given the volatility and regulatory pressures, especially amid U.S.-China tensions, investors might see increased risks associated with holding Nvidia stock.

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