The stock suffers on Wall Street Nvidiaan American giant of graphics processors which represents the main share of the growth of artificial intelligence, after theopening of an investigation by the Chinese authorities for possible violations of antimonopoly law of the country. The Californian company closed the session down by 2.55%, at $138.81 per share, but still remains up 180% since the beginning of the year, making it one of the best stocks on the Nasdaq in 2024 thanks to continued interest of investors for artificial intelligence.
The opening of the investigation
China’s State Administration for Market Regulation has opened a file on the company, saying the US chipmaker is suspected of violating commitments made during the$7 billion acquisition by the Israeli chip designer Mellanox Technologies of 2020.
Although Chinese regulators approved the transaction at the time, they have I imposed several conditions antitrust to prevent post-merger monopolistic risks, which Nvidia was required to comply with. It is not clear which of these commitments may have been disregarded.
Nvidia’s response
Nvidia made it known overnight that it was “happy to answer any questions regulatory bodies may have.” The company “wins on merit, as reflected in our benchmark results and customer value, and customers can choose the best solution for them,” it said in a statement.
“We work hard to provide the best products possible in every region and we honor our commitments wherever we do business“, he underlined.
US-China tensions weigh heavily
The Nvidia charges are the latest chapter in trade tensions between China and the United States, particularly over chip-making capabilities, with the Biden administration announcing on December 2 a latest round of restrictions targeting chip-making makers. semiconductors.
Plus, last week, four major ones Chinese industrial associations issued a coordinated response, saying Chinese companies should be cautious about purchasing US chips as they were “no longer safe” and should instead buy locally.
