Mon Dec 09 12:40:00 UTC 2024: ## Nvidia Under Investigation by Chinese Regulator, Shares Dip
**Beijing/New York –** Nvidia, the leading artificial intelligence chipmaker, is facing an investigation by China’s State Administration for Market Regulation (SAMR) over potential violations of the country’s anti-monopoly law. The probe, announced Monday, focuses on Nvidia’s 2019 acquisition of Mellanox.
The announcement caused Nvidia’s shares to fall approximately 2% in pre-market trading. The SAMR statement cited suspected violations of anti-monopoly law related to the Mellanox acquisition as the basis for the investigation. Nvidia has yet to publicly comment on the matter.
This investigation comes amidst escalating tensions between the U.S. and China regarding semiconductor technology. The Biden administration recently imposed further restrictions on the sale of advanced semiconductor manufacturing tools to China. Previously, the U.S. has already barred Nvidia from selling its most advanced AI chips to China, prompting the company to develop alternative products compliant with U.S. regulations.
Despite this setback, Nvidia’s shares have seen significant growth this year, rising nearly 188% fueled by investor enthusiasm for the AI sector. This strong performance has contributed to broader market gains in the technology sector. The investigation’s impact on Nvidia’s long-term performance remains to be seen.
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