China's top market watchdog announced on Monday a decision to launch a further probe into Nvidia for anti-trust violations following a preliminary investigation.

The State Administration for Market Regulation said an investigation found the US chip giant had run afoul of the country's antitrust rules.

Beijing – which announced the investigation in December – is currently engaged in an intense contest with the United States for supremacy in the critical field of semiconductors.

"Following a preliminary investigation, it has been determined that Nvidia Corporation has violated the Anti-Monopoly Law of the People's Republic of China," the watchdog said in a statement.

The regulator "has therefore decided to conduct a further investigation into the matter in accordance with the law", it added.

The statement did not provide further details about Nvidia's alleged legal violations or the further probe.

California-based AI powerhouse Nvidia reported earnings last month that raised concerns about its business in China, which has come under increasing scrutiny in Washington as tensions over trade and geopolitics mount. (AFP)