The investigation against Nvidia is seen as a reaction to the increasing chip export restrictions imposed by the U.S. government.

China officials said they're looking into Nvidia's acquisition of chip designer Mellanox, which Nvidia purchased for nearly $7 billion five years ago.

Nvidia shares slid about 2% in early market trading Monday morning after China announced it was opening an investigation into one of the world’s most valuable companies over potential antitrust law violations.