Nvidia stock dropped on Monday after China's market regulator launched an investigation into the AI chipmaker over suspected violations of the country's anti-monopoly law.
The State Administration for Market Regulation said Nvidia is suspected of violating commitments it made during its acquisition of Mellanox Technologies in 2020, Bloomberg and Reuters reported. China approved that deal on the condition that Nvidia not discriminate against Chinese firms.
China's action comes amid U.S. government moves to restrict exports of advanced computer chips and semiconductor manufacturing equipment to China.
Nvidia gets about 15% of its revenue from China.
Meanwhile, Nvidia is facing an antitrust probe in the U.S. as well. The Justice Department is investigating whether Nvidia has made it difficult for customers to use rival products.
Nvidia Stock Is On Four IBD Lists
On the stock market today, Nvidia stock slid 2.6% to close at 138.81. However, Nvidia stock found support at its 50-day moving average line, according to IBD MarketSurge charts.
Nvidia stock has been trending sideways for about seven weeks. It hit a record high of 152.89 on Nov. 21 after the company posted a beat-and-raise earnings report for its fiscal third quarter.
Nvidia is on four IBD stock lists: IBD 50, Leaderboard, Sector Leaders and Tech Leaders.
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