Nvidia Corp. NVDA has dismissed rumors circulating on social media suggesting it plans to decrease its supply of products to China. The company clarified through a post on Chinese social media that these claims are untrue.
What Happened: Nvidia emphasized the significance of the Chinese market, stating its commitment to delivering high-quality products and services to its customers in China. The company's statement comes amid an ongoing antitrust probe, which has heightened scrutiny on its operations, Reuters reported on Thursday.
Why It Matters: The denial from Nvidia comes at a critical time as the company is under an antitrust investigation by Chinese authorities. The probe, initiated earlier this month, focuses on Nvidia’s acquisition of Mellanox Technologies and its potential anti-competitive practices. Analysts suggest that this investigation may not be resolved in the near term, indicating prolonged scrutiny for the company.
Despite the investigation, Nvidia is actively expanding its presence in China. The company has reportedly increased its workforce in the region, adding hundreds of employees to bolster its research and development capabilities, particularly in autonomous driving technologies. This expansion, as reported by Bloomberg, highlights Nvidia’s strategic focus on maintaining and growing its operations in China, a crucial market for its products.
Price Action: Nvidia stock fell by 0.55% on Thursday during the premarket hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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