FX.co ★ Nvidia stock slides as China launches antitrust probe

Nvidia finds itself in the midst of an antitrust investigation by Chinese authorities, causing its stock to plummet. Watch out, Nvidia, a storm is brewing on your horizon!

On December 9, shares of Nvidia, the largest chipmaker, plunged by 2.55% after China launched an antitrust probe into the company. This comes amid growing tensions between the United States and China. In 2025, Chinese authorities plan to loosen monetary policy and increase government spending.

Analysts suggest that Nvidia is caught in the crossfire of the chip war between the US and China. In this ongoing confrontation, Washington has restricted the export of key semiconductor components to 140 Chinese companies in an effort to stifle China’s semiconductor industry and slow down its AI advancements. Beijing, in turn, has imposed restrictions on the export of various metals.

Notably, Nvidia became the world’s most valuable company this year, with its stock price increasing nearly tenfold since the end of 2022. This turnaround began in late 2022 when OpenAI, a major user of Nvidia’s graphics processors for its AI developments, launched ChatGPT. This marked the beginning of the generative AI era for the masses. This year, however, Nvidia’s management is under antitrust scrutiny. Fueling the fire are statements from US officials who argue that no single company should control the future of global artificial intelligence. Analysts and market participants warn that this sets a dangerous precedent and poses significant economic risks.