By Miguel Mike Medina
Photo: David Paul Morris | Bloomberg | Getty Images
Nvidia’s Monday performance was less than satisfactory. The chipmaker’s shares slipped after a Chinese regulator said it was investigating the company.
The State Administrator for Market Regulation said it is investigating Nvidia over its 2020 acquisition of Mellanox Technologies.
Regulators in China and other nations approved the deal, with Chinese officials requiring conditions such as Nvidia not discriminating against its companies.
Shares declined more than 2%. However, shares of the AI chip have outperformed this year, rallying nearly 188% as investors ramp up bets on the sector more than two years after ChatGPT’s debut.
The stock is among the hottest on the market, surging nearly 200% this year as the AI boom has fueled demand for the company’s chips. Its market value is more than $3 trillion, second only to Apple.
According to Bloomberg, Nvidia is also under antitrust scrutiny in the United States.
In addition to materials and chip sales, China and the United States are trying to bolster their development and manufacturing of microprocessors at home.
Miguel Mike Medina is the publisher of The MMM Journal. He can be reached at medinamiguelmike@gmail.com
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