Shares of Nvidia experienced a decline on Monday following the announcement from China that it is investigating the prominent U.S. microchip manufacturer for potential breaches of the country’s anti-monopoly regulations.

In a succinct press release that offered limited information, Chinese authorities appear to be examining Nvidia’s 2019 acquisition of Mellanox, a company specializing in network and data transmission, which was valued at $6.9 billion.

On Monday, Nvidia’s shares fell by 2.6%, although they have surged by 180% during the year thus far.

Nvidia is viewed as a key indicator of demand within the artificial intelligence sector. The company has played a significant role in propelling AI to become one of the largest market segments, as major tech firms invest significantly in Nvidia’s chips and data centers required for training and running their AI systems.

Nvidia’s stock has skyrocketed this year, driven by increased revenue and profits attributed to rising AI demands. According to data analytics firm FactSet, approximately 16% of Nvidia’s revenue is generated from China, making it the second largest after the U.S.

A representative from Nvidia, located in Santa Clara, California, stated via email that the company is “happy to answer any questions regulators may have about our business.”

In its latest earnings report, Nvidia reported revenues of $35.08 billion, marking a 94% increase from $18.12 billion the previous year. The company also reported earnings of $19.31 billion for the quarter, more than twice the $9.24 billion recorded during the same period last year, although the report did not specify the revenue contribution from China.

Recently, Nvidia’s market capitalization surged to $3.5 trillion, surpassing Microsoft and even briefly eclipsing Apple to become the most valuable company worldwide.

The antitrust investigation launched by China follows a summer report from a technology news outlet, revealing that the U.S. Justice Department is probing claims from competitors that Nvidia may have been exploiting its market position in the chip industry. The allegations include claims that Nvidia threatened repercussions against those who purchased products both from Nvidia and its competitors simultaneously.

David Bieri, an expert in international finance at Virginia Tech, asserted that the investigation by China is “not specifically about Nvidia’s operations in China” but instead serves as a message to the incoming Trump administration. Bieri stated that China is attempting to establish the tone for future diplomatic relations.

According to Bieri, the message from the Chinese government to the U.S. is clear: “don’t mess with us, because all of your darling corporations that your version of capitalism needs to prosper have entanglements” with China.

He noted that Nvidia must adapt its strategy for operating in China or include contingencies in its budget for the uncertainties that may arise from doing business there.

“I don’t think this is something that they can easily dismiss,” he remarked, expressing confidence in Nvidia’s management to navigate various risks, including credit, market, operational, and political concerns.

Nvidia, known for developing graphics processor chips (GPUs) in 1999, has been instrumental in driving the growth of the PC gaming industry and revolutionizing computer graphics.

Last month, Nvidia made headlines by replacing Intel on the Dow Jones Industrial Average, effectively ending Intel’s 25-year presence on the prestigious index.

While Nvidia designs its chips, it does not manufacture them, instead heavily relying on Taiwan Semiconductor Manufacturing Co., which is a competitor of Intel.