The intensifying chip war between China and the United States! China launches antitrust investigation against NVIDIA, how much impact on NVIDIA's performance?

China's State Administration for Market Regulation announced on the 9th that it has launched an antitrust investigation against AI chip leader NVIDIA for suspected violations of antitrust laws. NVIDIA's stock price fell 2.55% on the 9th. This move by China may be a response to the US restrictions on semiconductor exports to China, indicating that they will not remain silent in the face of a series of trade sanctions, but whether the Trump administration is willing to negotiate remains unknown. In the past 4 quarters, NVIDIA's total revenue in the Chinese market was US$13.5 billion, accounting for 12% of its global business. Due to US restrictions on NVIDIA's sale of high-end chips to China, NVIDIA's Chinese business has already shrunk. The investigation against NVIDIA is a response to the US restrictions on China's semiconductor industry, indicating that China intends to express its dissatisfaction and will not remain silent in the face of trade and technology sanctions, especially in response to possible actions against China next month when the Trump administration takes office. NVIDIA announced in 2019 that it will acquire Israeli chip maker Mellanox Technologies for US$7 billion. The Chinese regulatory agency approved the acquisition because NVIDIA agreed to supply GPUs to China and not to discriminate against Chinese consumers, thus passing the review smoothly. However, the Chinese State Administration for Market Regulation now suspects that NVIDIA's acquisition of Mellanox Technologies violates China's antitrust law. NVIDIA stated that the acquisition protocol can be revoked after six years. Eurasia Group founder Ian Bremmer believes that China's move is a challenge to the new US government and may pave the way for a major protocol if both sides are willing to negotiate, but this is still unclear. Bob O'Donnell, chief analyst at TECHnalysis Research, said that this investigation is unlikely to have a significant impact on NVIDIA, especially in the short term, because most of NVIDIA's most advanced chips have been restricted from being sold to China.