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What you need to know
- Nvidia stock fell on Monday following a Chinese regulator’s announcement that the chipmaker is under investigation.
- State Administration for Market Regulation has announced that it will investigate Nvidia’s 2020 purchase of Mellanox Technologies.
- China’s regulators and those of other countries approved the agreement. Chinese officials demanded that Nvidia refrain from discrimination against their companies.
Nvidia shares fell on Monday following a statement by China’s State Administration for Market Regulation that the company is being investigated for potential anti-monopoly violations.
Antitrust regulator SAMR announced Monday it will be investigating Nvidia regarding its 2020 acquisition of Israeli American networking hardware maker Mellanox Technologies. SAMR stated that it “is opening a probe into Nvidia in accordance with law,” According to CNBC’s translation.
In a statement provided to Investopedia, a company spokesperson wrote, "NVIDIA wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them. In every market, we strive to deliver the highest quality products and meet our obligations. We are happy to answer any questions regulators may have about our business."
The deal, worth $6.9 billion, was announced by Chinese regulators on March 19, 2019 and concluded in April 2020. Days later, regulators from Europe, Mexico, the U.S., and China approved the agreement.
Chinese regulators approved the deal with conditions that Nvidia wouldn't discriminate against its companies and that Mellanox informed competitors of new products within 90 days of providing them to Nvidia, according to Bloomberg.
Stocks in the chipmaker, which have been booming thanks to AI booms have fallen about 2% to $139.61 on Monday. But they are still up more than 180% from the beginning of the year.
UPDATE—This article has been updated with a statement from Nvidia, additional information, and the latest share price movements.
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