China Probes Nvidia's 2020 Mellanox Deal for Antitrust Violations; Shares Fall 2%

Dec 9, 2024, 11:43 AM

China's State Administration for Market Regulation (SAMR) has launched an antitrust investigation into Nvidia Corp., suspecting the US chipmaker of violating China's anti-monopoly laws, according to reports by CCTV. The probe, announced on Monday, reportedly relates to Nvidia's acquisition of Mellanox Technologies in 2020 and the restrictive conditions outlined in the antitrust review of that deal. The announcement led to a more than 2% decline in Nvidia's shares during pre-market trading on Monday. China accounts for approximately 15% of Nvidia's data center revenue, equating to around $4.5 billion in the third quarter and about 13% of its total Q3 revenue. The investigation adds to Nvidia's regulatory challenges, as authorities in the US, UK, Europe, and South Korea are also scrutinizing the company's practices.