This article first appeared on GuruFocus.
Sep 15 – Nvidia (NASDAQ:NVDA) shares slipped about 1.5% in Monday trading after Chinese authorities moved against the company. Investors reacted quickly as the market priced in the risk of a prolonged regulatory review.
China’s State Administration for Market Regulation says a preliminary probe found Nvidia failed to meet conditions tied to its 2020 purchase of Mellanox Technologies, and the agency plans further investigation. The regulator did not lay out specific breaches. Nvidia did not immediately comment.
Traders see the announcement as regulatory friction rather than a change to Nvidia’s fundamentals today, but the move matters because China represents a large sales market for advanced chips. The timing also complicates delicate U.S.-China trade talks, adding a political dimension to what began as an antitrust review.
The probe centers on commitments tied to the Mellanox deal, which Chinese approval originally made conditional. Watch for follow-up from Beijing or a formal response from Nvidia; either could move sentiment again. For now, the story highlights how cross-border tech deals face renewed scrutiny amid broader geopolitical tensions.