TLDR
- Nvidia shares fell 0.2% to $177.41 premarket after China’s regulator found the company violated antimonopoly laws
- The violation relates to commitments made during Nvidia’s $6.9 billion Mellanox acquisition in 2020
- Director Mark Stevens sold $88.6 million worth of shares on September 11-12, 2025
- Google announced £5 billion investment in UK AI development over next two years
- Analysts suggest investors should look past China concerns as company has removed Chinese sales from forecasts
Nvidia shares edged lower in premarket trading Tuesday as investors processed news of regulatory troubles in China and a large insider sale. The stock dropped 0.2% to $177.41 before market open.
China’s State Administration for Market Regulation found that Nvidia violated Beijing’s antimonopoly laws. The breach relates to commitments the company made when it acquired Israeli networking technology firm Mellanox for $6.9 billion in 2020.
Beijing’s antitrust regulator said the investigation was continuing. They did not elaborate on the preliminary findings or indicate whether Nvidia would face punishment.
Nvidia responded that it complies with the law and will cooperate with government agencies. The company has already removed Chinese sales from its forecasts.
The ruling affects Nvidia’s hopes to resume sales of its H20 chips in China. It also impacts plans to sell more advanced Blackwell processors in the country.
Analyst Views on China Impact
CFRA Research analyst Angelo Zino told investors to look past these moves. He said they should treat the situation as the new normal.
“We also note dialogue between the nations should be viewed positively for the likes of Nvidia and AMD, which patiently await ramping AI products into the region,” Zino wrote. He sees potential for future market access.
Other chip stocks performed better in premarket trading. Advanced Micro Devices rose 0.5% while Broadcom gained 1.1%.
Director Stock Sale Adds Pressure
Director Mark Stevens sold $88.6 million worth of Nvidia shares on September 11 and 12. The timing of the large sale may have added to selling pressure.
Stevens sold 497,797 shares across two transactions. On September 11, he sold 200,000 shares at an average price of $177.47 for $35.5 million.
The next day, he sold another 297,797 shares at $178.19 per share for $53.1 million. Stevens still holds over 19 million shares through various trusts and direct ownership.
The sales came as Nvidia trades near its 52-week high of $184.48. The company maintains a market value of $4.31 trillion.
Investment in AI technology continues to grow outside China. Google announced Tuesday it would spend £5 billion on AI development in the UK over the next two years.
UBS Global Wealth Management chief investment officer Mark Haefele sees continued growth ahead. “Robust investment and encouraging monetization should continue to underpin AI growth,” he wrote.
Haefele expects the next phase of growth to come from continued inferencing expansion. He also points to broader AI adoption and agentic AI development as growth drivers.
CoreWeave recently announced a $6.3 billion cloud computing agreement with Nvidia. The deal allows CoreWeave to sell reserved cloud computing capacity while giving Nvidia access to remaining unsold capacity.
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