Nvidia Under Fire: China Launches Antitrust Probe Amid Escalating Trade Tensions

Chipmaker Nvidia Closes Session in Red After China Announces Investigation

Chipmaking giant Nvidia closed Monday’s session with a 2.5% decline after China announced an antitrust probe into the company, further escalating trade tensions between Beijing and Washington over AI dominance.

The investigation into Nvidia suspects the company of breaking anti-monopoly law and is also set to probe its 2020 acquisition of Mellanox, which was approved by China’s State Administration for Market Regulation under the condition that the chipmaker avoid discriminating against Chinese companies.

A Statement from Nvidia

An Nvidia spokesperson responded to the news on Monday: "We work hard to provide the best products we can in every region and honor our commitments everywhere we do business. We are happy to answer any questions regulators may have about our business."

Escalating Trade Tensions

The investigation comes a week after President Joe Biden’s administration launched semiconductor export restrictions, aimed at limiting China’s access to US chips.

Danni Hewson, head of financial analysis at AJ Bell (AJB.L), noted: "It’s another sign of continued tension between the US and China which has put chipmakers up front as potential pawns in what seems to be a game of brinkmanship when it comes to tech development."

Nvidia’s Performance

At close, Nvidia’s share price was $135.91 (-3.00%), with Nasdaq GS experiencing delays due to technical issues.

Other Notable News in the Tech Sector

• Oracle (ORCL): Software and cloud company Oracle slid 8% in pre-market trading on Tuesday morning after it reported second-quarter earnings that just missed Wall Street expectations.
  • Revenue came in at $14.06bn (£11.01bn) in the second quarter, which was just below estimates of $14.12bn.
  • Adjusted earnings per share of $1.47 were also lower than expected.
• TSMC (2330.TW): Despite reporting growth, Taiwan-listed shares were down nearly 1% on Tuesday’s session, while New York-listed shares fell more than 1% in pre-market trading.

Ashtead Moves Primary Listing to US

In the UK, international equipment rental company Ashtead saw its shares fall 9% on Tuesday morning after it warned on profits. The company cited "local commercial construction market dynamics in the US" as a key factor contributing to the decline.

Dan Coatsworth, investment analyst at AJ Bell, noted: "It was always a question of ‘when’ not ‘if’ Ashtead would move its main stock listing to the US."

The next logical step for Ashtead could be selling off its remaining UK operations, which are significantly smaller than its US business.

Stay Up-to-Date with the Latest Financial News

• Download the Yahoo Finance app on Apple or Android devices.
• Follow your favorite companies and stay informed about market trends.
• Get expert insights and analysis from top financial journalists.