The investigation by Chinese regulators follows reports of a U.S. Justice Department probe into Nvidia's market practices. Experts suggest that China's move may be a strategic signal to the incoming U.S. administration, highlighting the interconnectedness of major U.S. corporations with China. Nvidia, known for its pioneering graphics processor chips, relies on Taiwan Semiconductor Manufacturing Co. for production. The company is expected to navigate the political and market risks associated with its operations in China.
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- Nvidia's stock fell after China announced an investigation into the company for suspected anti-monopoly law violations, focusing on its 2019 acquisition of Mellanox.
- Nvidia's shares have surged significantly this year due to high demand for AI technology, with about 16% of its revenue coming from China.
- The investigation is seen as a strategic move by China to signal its stance to the incoming U.S. administration, highlighting the interconnectedness of U.S. companies with China.
- Nvidia's market value recently reached $3.5 trillion, surpassing Microsoft and briefly overtaking Apple as the world's most valuable company.