The AI giant NVIDIA has found itself in the sights of Chinese antitrust authorities. The allegations are extensive and the shares are coming under pressure.
• China is investigating NVIDIA for possible violations of anti-monopoly laws
• Investigations could be seen as a response to US chip restrictions against China
• Investors concerned
According to a Reuters report, China has launched an investigation into US giant NVIDIA. The focus here is, among other things, on possible violations of antitrust laws.
Obligations from the 2020 takeover not fulfilled?
Specifically, the investigation is also concerned with the fact that NVIDIA is said to have failed to meet possible obligations in connection with the takeover of Mellanox, a leading provider of high-performance network technologies. The company was purchased in 2020 and NVIDIA had put around $6.9 billion on the table for the takeover.
NVIDIA finds itself caught between the fronts of the trade war
The investigation by China’s antitrust authorities is apparently no coincidence. According to Reuters, it can be assumed that the Asians will retaliate against the US’s recent chip restrictions on China. Recently, US President-elect Donald Trump, who had already taken a hard line against China during his first term in office, declared on NBC’s “Meet the Press” that China should “not want to play games” with the US. when tariffs are imposed on imports from China.
Impact on NVIDIA’s business
The chip manufacturer still generates a large portion of its sales in China, even though trade restrictions on the chip sector have recently caused significant losses for Americans in this region. Nevertheless, the latest developments are likely to have consequences for NVIDIA’s business and have a significant impact on developments in a sales market that is very important for NVIDIA.
Investors are reacting with concern to the current news and temporarily sent NVIDIA shares down 2.42 percent to $138.99 in premarket trading on NASDAQ. This marks the third day of losses in a row for the AI giant. Over the year, the share certificate remains one of the strongest performers on the US stock market: there has been an increase of 187 percent in investor portfolios since January.
Editorial team finanzen.net
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