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Nvidia’s value fell more than £80bn after Chinese regulators launched an investigation into the technology business.
Shares of the computer chip giant fell 3 percent on Wall Street after China’s state media reported that the country’s competition watchdog had opened an investigation into whether Nvidia violated antitrust laws.
The regulator is also reviewing whether the company violated commitments it made as part of the £5.4bn acquisition of Israeli-American computer company Mellanox, which authorities had approved in 2020 on the condition that Nvidia did not discriminate against Chinese companies.
The investigation will cause a potential headache for Nvidia, which depends on China for about 15 percent of its sales.
Drop: Nvidia fell 3% on Wall Street after China’s state media reported that the country’s competition watchdog opened an investigation into whether it violated antitrust laws.
The move has sparked speculation that the company is the latest to be caught in the middle of an escalating trade war between the United States and China over next-generation computer chips.
Nvidia technology is crucial to powering artificial intelligence (AI) processors. Its share price has soared over the past year, making it one of the world’s largest companies worth almost £2.7 trillion.
However, US officials have implemented strict export controls that have only allowed it to sell diluted versions of its processors in the Chinese market.
The investigation also comes a week after the United States unveiled even tougher measures to stop the sale of high-end computer chips in China.
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