TLDR
- Nvidia shares fell 0.2% premarket after China found antitrust violations related to 2020 Mellanox acquisition
- Director Mark Stevens sold $88.6 million in shares across two September trading sessions
- Chinese regulator investigation continues with no punishment details disclosed yet
- Google pledged £5 billion UK AI investment while analysts remain bullish on growth
- Company already removed China sales from forecasts, treating restrictions as new normal
Nvidia stock declined 0.2% to $177.41 in premarket trading Tuesday following regulatory troubles in China and a major insider stock sale.
China’s State Administration for Market Regulation found Nvidia violated Beijing’s antimonopoly laws. The breach connects to commitments made during the company’s $6.9 billion Mellanox acquisition in 2020.
The regulator said its investigation continues but provided no details on potential punishment. Nvidia responded it complies with laws and will cooperate with authorities.
This ruling hurts Nvidia’s chances of resuming H20 chip sales in China. It also blocks plans for selling advanced Blackwell processors in the country.
Director Unloads $88.6 Million Position
Director Mark Stevens sold 497,797 shares worth $88.6 million on September 11-12. The massive sale may have added selling pressure on shares.
Stevens executed two transactions at average prices between $177.47 and $178.19 per share. He maintains over 19 million shares through trusts and direct ownership.
The sales occurred near Nvidia’s 52-week high of $184.48. The company holds a $4.31 trillion market capitalization.
Other chip stocks outperformed Nvidia Tuesday morning. Advanced Micro Devices gained 0.5% while Broadcom rose 1.1% premarket.
Analysts Dismiss China Concerns
CFRA Research analyst Angelo Zino told investors to look past China moves. He called the regulatory environment the “new norm” for operations.
Zino sees potential upside from improved US-China dialogue. He believes this could benefit Nvidia and AMD as they await AI product launches in the region.
Nvidia already removed Chinese sales from revenue forecasts. Management treats export restrictions as permanent business conditions.
Investment in AI technology continues growing outside China. Google announced £5 billion in UK AI development spending over two years Tuesday.
UBS chief investment officer Mark Haefele expects continued AI growth momentum. He points to robust investment and encouraging monetization trends.
The next growth phase should come from inferencing expansion, broader adoption and agentic AI development. CoreWeave recently signed a $6.3 billion cloud computing deal with Nvidia.
