Nvidia stock sinks 3% after China scrutinizes Mellanox deal
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A Chinese regulator is probing Nvidia for anti-monopoly practices. The scrutiny follows US curbs on US exports of AI chips and semiconductor equipement to China. The Chinese probe is focused on Nvidia’s 2020 acquisition of Israel’s Mellanox Technologies. With NVDA stock down 3%, expect further selling to commence. Nvidia (NVDA) has sold off more than 3% at the front end of Monday after news emerged that the Chinese government has begun an antitrust probe into the leading semiconductor firm. NVDA shares have fallen to the $138s at the time of writing. The Dow Jones Industrial Average (DJIA) sank 0.2% at the time of writing, not as bad as the NASDAQ’s 0.5% sell-off. The market appears to be somewhat wary of the November Consumer Price Index (CPI) to be released on Wednesday, and Wall Street appears to be cashing in on gains registered following the election of President-elect Donald Trump one month ago. Nvidia stock news China’s The State Administration for Market Regulation agency has opened an investigation into the circumstances surrounding Nvidia’s acquisition of the Israeli Mellanox Technologies. At the time of the acquisition in 2020, China approved the deal with the requirement that Nvidia not discriminate against Chinese companies. Now that the Biden administration has added a number of regulations against selling certain semiconductor components, chips and equipment to build those chips, Nvidia could be in breach of some of those provisions. The new decision comes after Beijing halted the export of some rare earth minerals used in semiconductors to the US, including gallium, germanium and antimony, last week. In a parallel move, China has begun scrutinizing end-users in the US over graphite exports. This move by China follows the US recently banning high-bandwidth memory chips to China used in artificial intelligence (AI) workloads. US-based Micron Technology (MU),…
Filed under: News - @ December 9, 2024 6:25 pm