Nvidia Corp (NASDAQ:NVDA) stock slid in the premarket Monday after a Chinese regulator said it was investigating the chipmaker over a possible breach of the country’s antitrust regulations.
The State Administration for Market Regulation alleged the chip designer violated its obligations while acquiring Mellanox Technologies, Reuters reports. Previously, Nvidia’s potential acquisition of Arm Holdings (NASDAQ:ARM) succumbed to global regulatory opposition.
Also Read: Chinese Social Media Company Hello Group Gains After Q3 Print, CEO Flags Overseas Growth
Nvidia’s offer to acquire Run:ai has drawn regulatory attention from the European Commission.
In 2024, U.S. antitrust authorities scrutinized Nvidia over possible influence within the artificial intelligence chip sector. The Justice Department sought Nvidia’s contract and partnership details. Additionally, the Federal Trade Commission (FTC) is reviewing investments by major technology firms.
The U.S. and China remained embroiled in geopolitical tensions as the Biden administration. imposed semiconductor sanctions on China, thereby restricting the country’s access to advanced artificial technology chips and GPUs of Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and Nvidia.
Reportedly, Nvidia could earn $12 billion in sales from 1 million H20 GPUs in China in 2024.
Last week, the U.S. launched its third semiconductor sanction on China, which focused on the export of advanced chips and chipmaking equipment to China. China retaliated by exercising tighter controls on the export of critical minerals used in advanced chip manufacturing.
Trump’s threats to launch a 25% tariff on Mexican imports prompted Nvidia and Intel Corp (NASDAQ:INTC) suppliers to reconsider Mexico operations.
Nvidia stock surged 196% year-to-date. Investors can gain exposure to the stock through ProShares Ultra Semiconductors (NYSE:USD) and EA Series Trust Strive U.S. Semiconductor ETF (NYSE:SHOC).
Price Action: NVDA stock is down 1.85% at $139.86 at last check Monday.
Also Read:
Photo by William Potter on Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
