Nvidia Shares Drop 2% in Frankfurt Amid Reports of US Probe
2 Sources
2 Sources
[1]
Nvidia shares fall 2% in Frankfurt after media report of US probe
LONDON (Reuters) - Nvidia shares fell 2.3% in Frankfurt on Friday, following media reports of the U.S. government launching an antitrust probe into the company following complaints from rival chipmakers, and alongside a broad sell off in tech stocks. The Information reported on Thursday that the Department of Justice has launched an investigation into Nvidia after competitors said it may have abused its market dominance in selling chips that power artificial intelligence. Nvidia shares closed down 6.7% on Thursday in New York, some 22% below June's record high, following a rout in technology global stocks over the course of July.
[2]
Nvidia shares fall 2% in Frankfurt after media report of US probe
LONDON (Reuters) - Nvidia shares fell 2.3% in Frankfurt on Friday, following media reports of the U.S. government launching an antitrust probe into the company following complaints from rival chipmakers, and alongside a broad sell off in tech stocks. The Information reported on Thursday that the Department of Justice has launched an investigation into Nvidia after competitors said it may have abused its market dominance in selling chips that power artificial intelligence.
Share
Share
Copy Link
Nvidia's stock price falls in Frankfurt following media reports of a US investigation into the company's chip sales to China. The probe focuses on potential violations of export restrictions.
Nvidia Stock Declines on US Probe Reports
Shares of Nvidia Corporation, the renowned graphics chip manufacturer, experienced a 2% decline in Frankfurt trading following media reports of a US government investigation into the company's chip sales to China
1
. The news has sparked concerns among investors and industry observers about potential regulatory challenges facing the tech giant.Details of the Reported Investigation
According to the reports, US officials are examining whether Nvidia violated export restrictions by selling advanced chips to China
2
. The investigation is said to be focused on determining if the company's sales of artificial intelligence chips to Chinese customers comply with the existing export control regulations.Impact on Nvidia's Market Position
Nvidia has been a key player in the global semiconductor industry, particularly in the development of AI-capable chips. The company's stock has seen significant growth in recent years, driven by the increasing demand for its products in various sectors, including data centers, gaming, and artificial intelligence applications.
Related Stories
Broader Implications for US-China Tech Relations
This reported probe comes amid ongoing tensions between the United States and China in the technology sector. The US government has been increasingly concerned about the transfer of advanced technologies to China, particularly those with potential military applications. This investigation, if confirmed, could signal a tightening of export controls and increased scrutiny of tech companies' dealings with Chinese entities.
Nvidia's Response and Future Outlook
As of now, Nvidia has not publicly commented on the reported investigation. The company's future performance and market position may be influenced by the outcome of this probe and any potential regulatory actions that may follow. Investors and industry analysts will be closely monitoring developments in this situation, as it could have broader implications for the semiconductor industry and US-China trade relations.
References
Summarized by
Navi
[1]
Related Stories
Weekly Highlights
Weekly Highlights
Today's Top Stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
