Nvidia shares slipped over 2.5% on Monday (Tuesday AEDT) following a Chinese regulator scrutinising the chipmaker over suspected violations of the country's antimonopoly law.
The Chinese government said the State Administration for Market Regulation had commenced an investigation into the company’s 2020 acquisition of Mellanox Technologies, amid the ongoing tech-trade battle between the U.S. and China.
The AI-bellwether was given approval for the US$7 billion (A$10.87 billion) deal by Beijing four years ago, providing that Nvidia not discriminate against Chinese firms.
However, the inquiry will examine Nvidia's adherence to these guidelines, including a requirement for Mellanox to reveal new product details to rivals within 90 days of launch.
The buyout of the Israeli-technology company meant Nvidia could optimise its datacentre-scale workloads and network solutions.
But Nvidia’s position as the leading global provider of AI chips has left the company in the crossfire of the U.S. and China showdown for tech dominance.
U.S. policy measures are currently restricting China's access to advanced semiconductor technology and China has imposed an export ban on critical minerals, including gallium and germanium, which are crucial for semiconductors.
Nvidia (NASDAQ: NVDA) closed down 2.55% at $138.81 on Monday and has a market cap of $3.488 trillion.