Nvidia has dismissed recent rumors spreading across social media, indicating that the technological firm intends to reduce the offering its products in China.
Recently, the company responded using Chinese social media by saying those rumors were not only wrong but also not true at all. This is even as the major chipmaker is being looked into in China for anti-competitive practices.
Nvidia's Reaction to Social Media Gossip
With the rumors about lowering the shipment of products to China, the company, Nvidia responded in public and issued clarifications. According to Reuters, the company calmed down its Chinese clients and partners and continued its strong pledge to serve the region with high-quality products and services.
Nvidia posted on Weibo explaining that the Chinese market matters to the firm for all its operations globally, yet reaffirming its commitment to this place.
Read More: Intel's $7.86B Subsidy Deal Comes With Strings Attached: Big Changes Ahead for Chip Giant
Ongoing Antitrust Probe in China
Nvidia, dismissing a rumor that has sent investors worried, is actually undergoing an antitrust investigation at a critical time by the authorities in China.
A probe that started earlier this month scrutinizes the company's acquisition of Mellanox Technologies, whose deal was at a valuation of $6.9 billion if this purchase has resulted in any kind of anti-competitive conduct in the Chinese market. The probe appears complicated to the operations of Nvidia in China as regulators weigh the potential competition implications in data centers and high-performance computing.
Despite the uncertainty surrounding the probe, Nvidia has continued to highlight the significance of its engagement with China. Analysts have noted that the antitrust probe may take some time to resolve, which implies that Nvidia may face extended periods of regulatory scrutiny in the region.
Nvidia is Hell-bent to Expand in China
Against this backdrop, Nvidia is moving to further consolidate its foothold in China.
As reported by Bloomberg, the company has been expanding its workforce in the region, particularly within areas of research and development (R&D).
According to sources, Nvidia has recruited hundreds of employees in recent years to boost its capability in autonomous driving technologies as well as AI applications that top China's fast-growing tech market.
As one of the world's largest markets for tech products, China remains a crucial player in Nvidia's long-term strategy.
Aftermath of Rumors Sends Nvidia's Stock Price Plunging
Despite the scorching criticism, Nvidia's stocks had performed resiliently. Thursday did break a small level on stock when it witnessed the de-growth in value down to 0.55 percent premarket, according to Benzinga.
These drops, however, mark part of the latest market action as investor nerves over an antitrust probe. That, nevertheless is unlikely to sink or tarnish long-term hopes.
In short, Nvidia's reaction to rumors that the company would scale back product availability in China proves that even with an open antitrust probe, it remains focused on running well in the country.
Of course, a probe does cause some problems for the company; however, its growth into the significant areas of self-driving automobiles and AI might mean Nvidia is well poised for ongoing success in this changing industry.
