Nvidia stock crashes by 3% as China accuses it of breaching anti-monopoly law
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Nvidia’s stock dropped 3% on Monday morning after Beijing publicly accused the company of breaking China’s anti-monopoly law. The allegation came from China’s State Administration for Market Regulation (SAMR), which said a preliminary probe had found that Nvidia didn’t follow the rules tied to its 2020 acquisition of Israeli chipmaker Mellanox Technologies. According to SAMR, Nvidia may have violated the conditions that China imposed when it approved the Mellanox deal. The agency didn’t stop there. Officials said the investigation is still active and would continue. As of Monday, Nvidia has not issued a response. Regulators accuse Nvidia of breaking its 2020 commitments Back in 2020, Nvidia secured China’s approval to acquire Mellanox — a company that builds networking hardware for data centers and servers — but with strings attached. The deal got greenlit only after Nvidia made specific promises to China’s regulators. Now, SAMR claims those promises were broken. SAMR said the U.S. chipmaker is suspected of ignoring obligations it agreed to under the deal’s terms. The agency’s preliminary report said Nvidia’s conduct breached China’s Anti-Monopoly Law, and the regulator confirmed the case is still open. The announcement sent Nvidia stock tumbling in U.S. premarket trading. Under China’s antitrust law, a company found guilty of anti-competitive behavior can be hit with fines ranging from 1% to 10% of its prior year’s sales. Nvidia made $17 billion in revenue from China in its last fiscal year, ending January 26. That accounted for 13% of Nvidia’s total sales, based on the company’s most recent annual report. Any penalty could be massive. This is all happening while U.S. and Chinese officials meet in Madrid to discuss trade. Reports say semiconductors are at the top of the agenda, and Nvidia’s name is on the list. With the U.S. placing restrictions on advanced chip exports…
Filed under: News - @ September 15, 2025 9:24 am