Nvidia Under Scrutiny Amidst Rising Tensions

Nvidia, a dominant force in the AI chip sector, is facing scrutiny from Chinese regulators for potential anti-monopoly violations related to its acquisition of Mellanox. This investigation has triggered a notable decline in its stock, resulting in a loss of approximately $90 billion in market value.

The backdrop of this probe is the escalating tech rivalry between the U.S. and China, exacerbated by recent American restrictions on advanced chip sales to the Chinese market. With Nvidia accounting for up to 80% of the AI chip market, the implications of the inquiry are significant, particularly as China represents 15% of its revenue.

Experts suggest that if found guilty, Nvidia could face substantial fines, marking a critical juncture for the company. As tensions rise, the outcome of this investigation may reshape the landscape of the tech industry and influence future innovations.