China targets Nvidia with anti-monopoly probe

Core Insights - Nvidia's shares are down 2% in pre-market trading following a preliminary investigation by China's market regulator, which found that the company may have violated anti-monopoly laws [1] - The investigation is linked to Nvidia's acquisition of Mellanox, a networking technology company, which was approved under certain conditions in 2020 [2][3] - The timing of this investigation coincides with ongoing US-China negotiations, highlighting rising tensions between the two nations, particularly in the semiconductor sector [3][5] Company Specifics - The Chinese regulator's investigation is focused on whether Nvidia has breached the conditions set during the approval of the Mellanox acquisition [3] - This investigation is part of a broader scrutiny of the semiconductor industry in China, which includes anti-dumping and anti-discrimination probes against US chips [4] - The current geopolitical climate complicates the situation for technology companies like Nvidia, as trade negotiations between the US and China are ongoing [6][7]