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Nvidia Stock Declines Nearly 3% In Monday Pre-Market: What’s Going On? – NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL)
Shares of Nvidia Corporation NVDA fell 2.43% in Monday’s pre-market trading after China’s market regulator extended its anti-monopoly probe into the U.S. chipmaker, following preliminary findings that suggested possible violations.
China Probes Nvidia Over Mellanox Deal Amid AI push
The preliminary investigation into the Jensen Huang-led company has unveiled violations of China’s anti-monopoly law. The ongoing investigation is centered around Nvidia’s acquisition of Israeli chip designer Mellanox Technologies.
The Beijing authorities allege that the California-based firm violated the terms of the market regulator’s 2020 conditional approval of the deal. This news emerges amid the ongoing trade talks between the U.S. and China in Madrid.
This investigation into Nvidia comes on the heels of China initiating two probes against the U.S. semiconductor sector, including an anti-dumping investigation. This move could potentially impact the ongoing trade discussions between the two nations.
Furthermore, Nvidia’s popularity in China is under threat as Beijing pushes for homegrown AI. Wei Shaojun, a professor at Tsinghua University, urged the country to develop domestic chips for artificial intelligence, warning against dependence on U.S. general-purpose graphics processing units.
The extension of the anti-monopoly investigation into Nvidia, coupled with China’s push for domestic AI chips, could potentially reshape the dynamics of the semiconductor industry in the region.
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Nvidia Leads Mag 7 In 2025, , Analysts Warn of Market Bubble
Despite this, Nvidia Corp. has significantly outpaced the Magnificent 7 (Mag 7) group since late 2022, achieving a relative performance increase of over 475%, driven by multiple catalysts. While peers such as Apple Inc. AAPL and Tesla Inc. TSLA have fallen behind.
Nvidia has surged more than 28% year-to-date in 2025, making it the top-performing Mag 7 stock this year as investors flock to AI enablers.
On the other hand, Deutsche Bank analysts question if the U.S. equities market is in a bubble, noting Nvidia’s massive market cap—which now surpasses all countries’ stock exchanges except the U.S., China, Japan, and India—as a potential warning sign.
Benzinga’s Edge Rankings place Nvidia in the 86th percentile for momentum and the 98th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
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