China’s Probe On Nvidia: Here’s How Retail Traders Reacted

Nvidia (NVDA) stock fell 1.5% in premarket trading on Monday in response to China’s allegations that the chip giant broke the country’s competition laws.

The move captured the attention of retail traders on Stocktwits, prompting a slew of responses. A bullish user emphasized China’s slow economy status and that the country needs Nvidia than the other way around. 

Other users said this is a good time to buy on the dip. 

China’s State Administration for Market Regulation said Monday that a recent review found Nvidia had broken the country’s Anti-Monopoly Law. The probe centers on Nvidia’s $7 billion purchase of Mellanox Technologies in 2019, along with related agreements.

The timing of the announcement appears strategic, as advanced semiconductor technology remains a central issue in U.S.-China trade talks. At the time of writing, high-level talks are underway between delegations from the U.S. and China in Madrid, Spain.

According to analysts cited by a Reuters report, the move by Chinese regulators may be a tactical response to the U.S. government’s decision to blacklist several Chinese firms last week.

Before trade discussions started on Sunday, China began two investigations targeting U.S. chip companies. One investigation is looking into whether certain analog IC chips from the U.S. are being sold too cheaply, and the other is examining whether U.S. actions toward China’s chip industry are unfair.

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid’ low message volume levels. Nvidia stock has gained over 32% in 2025 and over 52% in the last 12 months. 

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