Nvidia caught in trade tensions

Core Viewpoint - The recent announcement by Chinese regulators regarding Nvidia's alleged antitrust violation is seen as a strategic move to gain leverage in ongoing US-China trade negotiations, rather than a genuine enforcement of antitrust laws [1][2][3] Group 1: Nvidia's Situation - Nvidia is facing scrutiny from Chinese regulators over its 2020 acquisition of Melanox, which was previously approved with conditions [2] - The company's shares have declined over 1.5% amid broader selling pressure in the semiconductor sector, which had recently experienced a rally due to AI-related optimism [3] - Nvidia has not yet begun shipments of its H20 AI chips to China, as final approval from Beijing is still pending, indicating that this approval is part of China's negotiation strategy [5][6] Group 2: Broader Industry Implications - China has initiated an anti-dumping probe targeting US analog chip suppliers, contributing to a nearly 3% drop in their shares [4] - The potential revenue upside for Nvidia is significantly tied to demand from China, which is now pushing for domestic alternatives to reduce reliance on US technology [4][6] - Nvidia reported no H20 sales to Chinese customers in the second quarter, highlighting the current limitations on its revenue potential in the region [6]