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Jensen Huang, Nvidia’s founder, president and CEO, speaks about the future of artificial intelligence and its effect on energy consumption and production at the Bipartisan Policy Center in Washington, D.C., Sept. 27, 2024.
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Nvidia shares were under pressure Monday after a regulator in China said it was investigating the chipmaker over possible violations of the country’s antimonopoly law.
Shares slipped about 2% before the bell.
The State Administration for Market Regulation opened an investigation into the chipmaker in relation to acquisition of Mellanox, the Chinese government said Monday.
“In recent days, due to Nvidia’s suspected violation of China’s anti-monopoly law and the State Administration for Market Regulation’s restrictive conditions around Nvidia’s acquisition of Mellanox shares … the State Administration for Market Regulation is opening a probe into Nvidia in accordance with law,” according to a statement translated by CNBC.
Nvidia did not immediately respond to a request for comment.
The news comes as competition heats up between the U.S. and China over chipmaking capabilities, with the Biden administration on Dec. 2 announcing a final slew of curbs targeting semiconductor toolmakers.
The U.S. has amped up restrictions on chip sales to China in recent years, barring Nvidia and other key semiconductor manufacturers from selling their most advanced AI chips in an effort to limit China from strengthening its military. The company has worked to create new products to sell in China that abide by the U.S. regulations.
Shares of the AI chip darling have outperformed this year, rallying nearly 188% as investors ramp up bets on the sector more than two years after the debut of ChatGPT. Shares have also helped push the market to new highs, along with the broader technology sector.
— CNBC’s Evelyn Cheng contributed reporting.
