Nvidia(US:NVDA) Sou Hu Cai Jing·2025-09-15 15:51Core Viewpoint - The National Market Regulation Administration of China has initiated further investigations into NVIDIA for allegedly violating the Anti-Monopoly Law and conditions set during the approval of its acquisition of Mellanox Technologies, indicating a serious breach of regulatory compliance [2][4][6]. Group 1: Investigation Background - NVIDIA is under investigation for a $6.9 billion acquisition of Mellanox Technologies, which was finalized in March 2019 at a price of $125 per share [7]. - The acquisition allowed NVIDIA to integrate Mellanox's technology, enhancing its capabilities in AI computing and networking, which has been pivotal in its recent market success [8]. Group 2: Regulatory Conditions - The acquisition was approved with specific conditions aimed at preventing anti-competitive practices, including a prohibition on forced bundling and ensuring fair supply to the Chinese market [9][10]. - The conditions were set to remain in effect for six years, after which NVIDIA could apply for their removal, contingent on market conditions [10]. Group 3: Potential Penalties - NVIDIA could face fines up to $8.5 billion if found in violation of the Anti-Monopoly Law, based on a percentage of its revenue in China [11][12]. - The regulatory scrutiny is part of a broader trend, as multiple semiconductor companies have faced similar investigations, indicating a tightening of market regulations in the industry [12]. Group 4: Market Impact - NVIDIA's stock fell nearly 3% following the announcement of the investigation, reflecting investor concerns over potential regulatory repercussions [6]. - The company has also faced challenges related to U.S. export restrictions, which have impacted its revenue from the Chinese market, further complicating its operational landscape [11][14].