China says it’s probing Nvidia for violating anti-monopoly laws [Video]

NEW YORK — Shares of Nvidia slid early Monday after China said it is investigating the high-flying U.S. microchip company over suspected violations of Chinese anti-monopoly laws.

In a brief press release with few details, Chinese regulators appear to be focusing on Nvidia’s $6.9 billion acquisition of network and data transmission company Mellanox in 2019.

Nvidia shares dipped 2.5% in morning trading Monday, falling below $140 each.

Considered a bellwether for artificial intelligence demand, Nvidia has led the AI sector to become one of the stock market’s biggest companies, as tech giants spend heavily on the company’s chips and data centers needed to train and operate their AI systems.

Nvidia’s shares have nearly tripled this year with the California company revenue and profit soaring on AI demand. According to data firm FactSet, about 16% of Nvidia’s …