Nvidia Reportedly Facing China Antitrust Probe. Why That Matters for the Stock

Nvidia, which booked 15% of its Q3 revenue from China, said it was ‘happy to answer any questions’ regulators may have

Nvidia’s stock heads for a third-straight decline after report of China’s investigation due to antitrust concerns.

Shares of Nvidia Corp. were headed for a third-straight decline Monday, after a report surfaced that China was investigating the semiconductor giant and artificial-intelligence leader for antitrust concerns.

Although Nvidia didn’t confirm the news in the Bloomberg report, the company did respond to a request for comment.

“We work hard to provide the best products we can in every region and honor our commitments everywhere we do business,” an Nvidia spokesperson said in an email to MarketWatch. “We are happy to answer any questions regulators may have about our business.”

Nvidia’s stock closed lower 2.6% on Monday, and has shed 4.4% over the past three sessions.

While the U.S. government has previously imposed some restrictions on what Nvidia could sell to China for “national security” reasons, Nvidia still generates a significant amount of revenue from China.

The company recorded $5.42 billion in revenue from China, including Hong Kong, during the fiscal third quarter to Oct. 27, or 15.4% of total revenue of $35.08 billion.

For the first nine months of fiscal 2025, $11.57 billion in revenue came from China, or 12.7% of the total, after the company booked $10.31 billion, or 16.9% of total revenue, from China in fiscal 2024.

Earlier Monday, Bloomberg reported that China has launched an investigation into Nvidia over concerns that the company has violated antimonopoly laws.

The Bloomberg report comes a day after president-elect Donald Trump said on NBC’s “Meet the Press” that China “doesn’t want to play games” with the U.S. if tariffs are placed on imports from China.

Trump has proposed 10% across-the-board tariff increases and 60% tariffs on China.

Nvidia’s stock is by far the Dow Jones Industrial Average’s best performer this year, as it has soared 180.3% so far in 2024, but was trading 6.8% below its Nov. 7 record close of $148.88.