Early Monday morning, shares of Nvidia Corp. were going to fall for the third day in a row after a story said China was looking into the semiconductor giant and AI leader for antitrust reasons.
NVDA -1.81%, Nvidia’s stock, fell 1.8% in premarket trade. It had already dropped 1.9% in the two previous sessions.
There have been times when the U.S. government limited what Nvidia could sell to China for “national security” reasons, but China is still a big source of cash for Nvidia.
In its fiscal third quarter, which ended on October 27, the company made $5.42 billion in sales in China, which includes Hong Kong. This was 15.4% of its total $35.08 billion in sales.
China brought in $11.57 billion, or 12.7% of the total, in the first nine months of fiscal 2025. In fiscal 2024, China brought in $10.31 billion, or 16.9% of the total, in income.
Bloomberg reported earlier Monday that China has begun an investigation into Nvidia because they think the company has broken antimonopoly rules.
The company did not answer right away when asked for a statement on the report.
On NBC’s “Meet the Press” the day before, president-elect Donald Trump said that China “doesn’t want to play games” with the U.S. if tariffs are put on goods from China. The Bloomberg story comes after that.
Trump wants to raise taxes on all goods by 10% and put 60% of those tariffs on China.
As of Friday, Nvidia stock had risen 187.6%, making it the Dow Jones Industrial Average’s DJIA -0.28% best performer of the year. It was $4.3% less than its all-time high of $148.88 on November 7.
