American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

China’s SAMR says Nvidia violated anti-monopoly law; shares fall

by admin September 15, 2025
September 15, 2025
China’s SAMR says Nvidia violated anti-monopoly law; shares fall

US chip giant Nvidia is facing a fresh round of antitrust scrutiny in China, deepening its troubles in a critical market as Washington and Beijing spar over technology access.

On Monday, the State Administration for Market Regulation (SAMR) said preliminary investigations showed Nvidia had violated China’s anti-monopoly law.

The regulator suggested the company may have breached commitments it made in 2020 when China approved its $7 billion acquisition of Israeli chip designer Mellanox Technologies.

SAMR did not provide details of the alleged violations or outline possible penalties but confirmed that it would continue its probe.

The announcement weighed on investor sentiment, with Nvidia shares falling 2.5% in premarket trading in New York.

Commitments under the Mellanox deal come into focus

Nvidia’s 2020 acquisition of Mellanox was cleared by Chinese regulators on the condition that the US firm guarantee supplies of its chips to the Chinese market.

That approval came before Washington imposed sweeping restrictions on the sale of advanced semiconductors to China.

According to SAMR, the company may have failed to uphold aspects of those commitments.

The regulator opened a formal investigation into Nvidia in December, and Monday’s update suggests the probe is advancing toward a more formal stage.

The scrutiny reflects growing sensitivity in Beijing about reliance on US technology.

While Mellanox’s networking products underpin many global data centres, including in China, Washington’s export bans have limited how much of Nvidia’s cutting-edge AI hardware can reach Chinese customers.

Trade talks clouded by chip tensions

The announcement coincided with the latest round of trade negotiations between senior US and Chinese officials in Madrid, which began Sunday.

The timing underscored how technology remains a flashpoint in the broader economic relationship between the two powers.

Over the weekend, Beijing launched two separate probes into semiconductors: an anti-dumping investigation into some chips imported from the US and a review of American export restrictions that Chinese officials say discriminate against its domestic industry.

Analysts said the antitrust move against Nvidia may be part of a broader strategy to counter US measures limiting China’s access to advanced processors.

“Chips remain at the centre of the geopolitical rivalry, and Beijing is signalling it will use regulatory tools as leverage,” said one Asia-based trade analyst.

Nvidia’s fraught position in China

Nvidia has had an uneasy relationship with the Chinese market in recent years, navigating both US restrictions and Beijing’s regulatory demands.

Earlier this year, Chinese authorities blocked shipments of its H20 chip, a product designed specifically to comply with US export controls.

Last month, the company struck an agreement with Washington to resume some sales of semiconductors to China, in exchange for handing over 15% of related revenue to the US government.

Chief executive Jensen Huang has warned that barring US chipmakers from China risks ceding the world’s largest AI market to local rivals such as Huawei.

He estimates the Chinese AI market could reach $50 billion within three years.

Chinese regulators have also pressed companies, including Tencent and ByteDance, to explain purchases of the H20 chip, raising concerns about data security.

Nvidia itself was summoned by China’s cyberspace regulator last month to answer questions on whether its products contained backdoor risks.

Outlook for Nvidia

The latest probe underscores the precarious position of Nvidia, the world’s leading AI chip supplier, as it sits at the heart of the US-China technology standoff.

The company’s meteoric growth has made it a target for both Washington’s export curbs and Beijing’s regulatory pressure.

While 60 out of 66 brokerages still rate the stock a “buy” or higher, with a median price target of $210, Nvidia faces mounting uncertainty in one of its most important overseas markets.

As trade talks continue in Madrid, the scope of Nvidia’s ability to sell into China will remain a central test of how far the two governments are prepared to push their rivalry in technology.

The post China’s SAMR says Nvidia violated anti-monopoly law; shares fall appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Boeing stock price is crashing: to get worse before rebounding
next post
The bullish case for the cheap Adobe stock price

Related Posts

Intellistake announces exclusive partnership with Singularity Venture Hub

July 16, 2025

Asian stocks end week strong: Nikkei, Kospi hit...

September 12, 2025

JEPI ETF forecast: here’s why the stock could...

December 2, 2024

Planet Fitness stock forecast: is PLNT a buy...

February 23, 2025

Donald Trump set to receive $1.25 billion worth...

April 24, 2024

Shopify stock price giant megaphone points to a...

March 20, 2025

Barclays upgrades Lindt and Barry Callebaut on positive...

September 17, 2024

Judge tosses defamation suit against Fox News by...

July 24, 2024

Trump-linked WLFI secures $590 million, claiming a spot...

March 15, 2025

Indian markets tumble amid escalating Middle East tensions;...

October 3, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Europe bulletin: Manchester synagogue attack aftermath, stocks close higher

      October 5, 2025
    • Evening digest: Trump sets deadline for Hamas, Canada’s slowdown, BTC rebounds

      October 5, 2025
    • Iran executes six people for alleged links to Israel, state media reports

      October 5, 2025
    • US digest: Trump’s Hamas ultimatum, government shutdown stalemate continues

      October 5, 2025
    • Japanese stocks may extend record run as Takaichi win revives ‘Abenomics’

      October 5, 2025

    Categories

    • Business (4,191)
    • Investing (2,958)
    • Latest News (2,080)
    • Politics (1,536)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved