NVIDIA Corporation's stock faced a decline as news emerged of an investigation by Chinese regulators into potential anti-monopoly violations concerning its acquisition of Mellanox Technologies. This probe has heightened investor concerns, especially given that China represents a significant portion of NVIDIA's revenue. Additionally, the U.S. Justice Department's reported investigation into antitrust violations has further compounded these worries. These regulatory challenges come at a time when NVIDIA is under scrutiny for its high valuation and slowing growth projections, despite its strong performance in the AI sector. The uncertainty surrounding these issues has contributed to the stock's downward movement.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF, designed to inversely track NVIDIA's performance, rose 2.68% to close at $6.51 on Tuesday, December 10, 2024.