Nvidia(US:NVDA) Guan Cha Zhe Wang·2025-09-16 07:23Core Viewpoint - Nvidia is facing increased regulatory scrutiny in China due to alleged violations of antitrust laws, which has created uncertainty for its business operations in the Chinese market, accounting for 13% of its total sales last year [1][2]. Group 1: Regulatory Actions - Chinese regulatory authorities have initiated further investigations into Nvidia for antitrust violations, following an initial investigation that began in December 2022 [1][4]. - The latest statement from Chinese regulators indicates a broader effort to utilize regulatory tools to enhance China's access to advanced semiconductors and reduce reliance on foreign competitors [2]. Group 2: Market Impact - Following the announcement of the investigation, Nvidia's stock price fell by as much as 2.4% in pre-market trading, reflecting investor concerns over the potential impact on its business in China [1]. - Analysts express concern that new measures could limit Nvidia's ability to sell network solutions to Chinese customers, a business valued at several billion dollars annually [5]. Group 3: Financial Implications - Nvidia's revenue in China for the fiscal year 2024 was reported at $10.31 billion, representing a 78% year-over-year increase, which could expose the company to fines ranging from $10.3 million to $1.03 billion under Chinese antitrust laws [9]. - If the violations are deemed particularly severe, fines could escalate to between $2.06 billion and $5.015 billion, significantly impacting Nvidia's financial standing [10]. Group 4: Geopolitical Context - The ongoing geopolitical tensions between the U.S. and China have led to increased scrutiny of American companies operating in China, with the U.S. government imposing export controls that affect Nvidia's operations [1][6]. - Nvidia's CEO has made multiple visits to China, indicating a commitment to the market, but the company continues to face challenges related to regulatory compliance and geopolitical pressures [6].