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Nvidia targeted by China: Top Story

China ruled that Nvidia violated anti-monopoly laws after concluding an initial investigation, in a move that is likely to ramp up pressure on Washington during sensitive trade negotiations taking place in Madrid. For more live coverage of markets watch the full episode of Market Sunrise and head to Yahoo Finance. Read More...

00:00 Speaker A

Well, overnight, China has ruled that Nvidia violated anti-monopoly laws after concluding an initial investigation.

00:10 Speaker A

This is likely to ramp up the pressure on Washington during sensitive trade negotiations that are taking place right now in Madrid.

00:20 Speaker A

Nvidia’s shares fell over 2% in the pre-market. The company has previously disclosed it’s facing scrutiny inside China where regulators demanded it keep supplying local companies in return

00:34 Speaker A

for regulatory approval of its 2020 acquisition of Mellanox.

00:40 Speaker A

According to China’s anti-trust law, companies can face fines of between 1 and 10% of their annual sales from the previous year.

00:50 Speaker A

China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26th, or 13% of total sales based on its last annual report.

01:03 Speaker A

Now, US-China trade talks continue in Madrid today with the sale of Tik Tok high up on the agenda.

01:10 Speaker A

Here’s President Trump’s take on that. He was speaking before China released its Nvidia statement.

01:23 Donald Trump

I may or may not. They’re negotiating Tik Tok right now.

01:28 Donald Trump

We may let it die or we may, I don’t know, it depends. Up to China. It doesn’t matter too much.

01:33 Donald Trump

I’d like to uh do it for the kids that like it.

01:37 Donald Trump

I mean, selfishly speaking, I did very well on Tik Tok and I got the youth vote. I got numbers that nobody’s ever even come close to in the Republican Party, nobody.

01:48 Donald Trump

If you look back to Romney and all these people, they got practically no votes. I got a lot.

01:53 Donald Trump

And uh some was attributed to Tik Tok, and a lot was attributed to Charlie.

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