NVIDIA's Tmall flagship store has completely cleared and removed all products, previously subjected to antitrust investigation

On December 12, news broke that NVIDIA's Tmall flagship store had completely cleared its products from the shelves.

On December 9, the State Administration for Market Regulation launched an investigation into NVIDIA. This was due to NVIDIA's suspected violation of the Anti-Monopoly Law of the People's Republic of China and the announcement regarding the antitrust review decision on NVIDIA's acquisition of Mellanox Technologies, Ltd. (State Administration for Market Regulation Announcement [2020] No. 16).

According to the announcement mentioned in the report, in April 2020, the State Administration for Market Regulation approved NVIDIA's acquisition of Mellanox with additional restrictive conditions, requiring NVIDIA not to engage in forced bundling or discrimination against customers when selling related products in the Chinese market, and to ensure product interoperability. NVIDIA is required to continue supplying its GPU accelerators, Mellanox high-speed networking equipment, and related software and accessories to the Chinese market based on the principles of fairness, reasonableness, and non-discrimination.

In response to the investigation, NVIDIA stated on December 10: "NVIDIA wins on the strength of our performance, as reflected in our benchmark results and the value we provide to customers, who can choose any solution that best fits their needs. We strive to provide the best products in every region and fulfill our commitments wherever we operate. We are happy to answer any questions regulators may have about our business."

China is an important market for NVIDIA. NVIDIA's operations in China involve manufacturing, sales and services, and technological cooperation, with partners including Lenovo, Hasee, Haier, JD.com, Tmall, Alibaba Cloud, and Tencent Cloud.

In the early hours of November 21, Beijing time, NVIDIA released its third-quarter financial report for the fiscal year 2025. The report showed that NVIDIA's revenue was $35.1 billion, a year-on-year increase of 93.7%; net profit was $19.31 billion, a year-on-year increase of 108.9%.

In this quarter, NVIDIA's gross margin was 74.6%, up 0.6% from the same period last year. NVIDIA CFO Colette Kress stated that the increase in gross margin was mainly due to the higher sales proportion of AI chips for data centers. The report indicated that revenue from the data center business, which includes GPU chips, AI servers, and other hardware and software products, reached $30.8 billion during the period, a year-on-year increase of 112% and a quarter-on-quarter increase of 17%.

Among the major revenue sources for NVIDIA in the third quarter were the United States, Singapore, and China, with the United States contributing $14.8 billion in revenue, mainland China (including Hong Kong) generating $5.4 billion, accounting for about 15% of its total revenue, and Taiwan generating nearly $5.2 billion. In the second fiscal quarter of 2025, NVIDIA's revenue from mainland China (including Hong Kong) reached $3.7 billion, a year-on-year increase of 33.8% and a quarter-on-quarter increase of 47.2%, while revenue from Taiwan was approximately $5.7 billion.

CITIC Securities research report stated that on December 9, 2024, the State Administration for Market Regulation's investigation into NVIDIA is a legitimate management measure to regulate and maintain fair market competition, which has a guiding role for the domestic chip industry and is expected to boost market sentiment for domestic computing power and chips in the short termWith the relevant domestic departments and industry associations increasing their emphasis on self-controllable technologies, we expect the overall pace of localization in the domestic semiconductor industry to further accelerate. In addition, the manufacturing sector is also expected to benefit.

Source: JinRongJie