Nvidia’s shares declined in early trading today following the release of details regarding an antitrust investigation by Chinese officials into the leading AI chipmaker.
The company, which derives about 10% of its revenue from China, is caught in the ongoing trade conflict between Washington and Beijing, which increasingly targets high-tech chip manufacturers. Earlier this month, the Biden Administration announced its third export ban to China over national security concerns, prompting Chinese officials to advise local companies to avoid U.S.-made chips.
The recent restrictions build on 2022 export regulations aimed at limiting China’s access to advanced semiconductors essential for military applications, according to U.S. Trade Secretary Gina Raimondo.
On Monday, the Chinese State Administration for Market Regulation revealed an investigation into Nvidia related to potential violations of antitrust laws concerning its $6.9 billion acquisition of Mellanox Technologies Ltd, approved in April 2020.
To adapt to sanctions while maintaining its presence in China, Nvidia has re-engineered three different chips for that market. The company is also preparing for potential changes in U.S. trade policy with the upcoming administration.
CEO Jensen Huang expressed readiness to support whatever direction the new administration takes; “Whatever the new administration decides, we’ll, of course, support the administration.”
By CEO NA Editorial Staff
