Nvidia Stock (NVDA) Plummets as China Levels New Anti-Monopoly Accusations

Nvidia's stock just hit an air pocket—China's latest antitrust broadside sent shares spiraling as regulators take aim at the chip giant's dominance.

Regulatory Roulette

Beijing's move signals escalating tensions in the tech cold war, putting Nvidia's lucrative Chinese market access in jeopardy. No specific figures were disclosed, but the impact was immediate and brutal on the charts.

Market Mayhem

Traders dumped positions faster than a hot GPU, wiping billions from Nvidia's market cap in hours. The timing couldn't be worse—just as AI demand was hitting fever pitch globally.

Because nothing says 'stable investment' like geopolitical whims dictating your portfolio's fate. The semiconductor saga continues—volatility included at no extra charge.

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China Extends Anti-Monopoly Probe

The latest allegations come from China’s State Administration for Market Regulation (SAMR), which said a preliminary probe found that Nvidia may have breached rules related to its 2020 acquisition of Israeli chipmaker Mellanox Technologies.

For context, Nvidia got China’s approval to buy semiconductor company Mellanox in 2020, but only after agreeing to certain conditions. One condition required Nvidia to avoid discriminating against Chinese companies and to share Mellanox’s new product details with rivals within 90 days. In response, Nvidia agreed to let Chinese chipmakers test whether products fit with Mellanox’s technology.

Later in December 2024, China launched an antitrust investigation into Nvidia’s acquisition deal. Now, SAMR says Nvidia didn’t keep those promises and might have violated China’s antitrust law. The agency added that the investigation is ongoing.

Implications for Nvidia

Under China’s antitrust law, companies guilty of anti-competitive practices can face fines of 1%–10% of their previous year’s revenue. In fiscal 2025, about 13% of Nvidia’s total sales came from China, so any penalty could be significant for the company.

What Is the 12-Month Price Target for Nvidia?

According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, two Holds, and one Sell assigned in the last three months. At $211.26, the Nvidia average stock price target implies a 19% upside potential.