Nvidia Stock Drops After China Says It Broke Competition Rules
Nvidia stock fell after China’s regulator said the company broke the country’s antimonopoly law. The case is linked to Nvidia’s 2020 purchase of Mellanox Technologies. When China approved that deal, it added some conditions. Officials now say Nvidia did not fully follow those rules.
The probe first began in December 2024 and has now been extended. After the news, Nvidia shares slipped more than 2% in early trading, before recovering slightly later in the session.
This news comes while tensions between the U.S. and China are already high, especially over technology, AI chips, and trade. Nvidia is one of the biggest names in the semiconductor and artificial intelligence market, and China is a key region for its business. Any action by regulators could impact how Nvidia sells chips and works with partners in China.
Nvidia said it follows all laws and will continue to work with Chinese authorities. Still, many investors are watching closely because the final decision could affect Nvidia’s future growth and its position in the global tech industry.
Impact :
Nvidia’s stock might stay under pressure if China imposes fines or new limits. The company could also face more challenges in its AI chip sales in China.
