Reports from China indicate that authorities are continuing an antitrust investigation into Nvidia, finding the US chipmaker culpable of market monopolization. The State Administration for Market Regulation (SAMR) launched a probe into the US giant on suspicion of monopolizing the market and discriminating against Chinese companies, particularly regarding its 2020 acquisition of Mellanox Technologies.
The ongoing investigation has cast further doubt on Nvidia's revenue from China. The company recently stated in a report that it would not be publishing China sales data for the coming quarters due to significant uncertainty. Earlier this year, investors reacted euphorically to reports that tech companies like Nvidia would be granted permission to export high-tech products to China in exchange for a 15 percent tax on sales to the country's federal budget.
Nvidia's China sales have already fallen sharply, from 26 percent to around 17 percent of total revenue, following the introduction of US export restrictions. However, the main challenges now stem from China itself, including the ongoing antitrust probe and the drive for domestic chip production, such as by Alibaba. Nvidia shares fell 2 percent in pre-market trading, and the Nasdaq 100 retreated around 75 points following the news.
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