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Nvidia denies receiving antitrust subpoena from DOJ

Nvidia denies receiving antitrust subpoena from DOJ

GrafaGrafa2024/09/05 01:25
By:Mahathir Bayena

Nvidia has denied reports claiming it received an antitrust subpoena from the United States Department of Justice (DOJ), leading to a slight rise in its share price during after-hours trading. 

This comes after Bloomberg reported on September 3 that Nvidia and other companies were subpoenaed by the DOJ as part of a potential antitrust investigation. 

The report alleged concerns that Nvidia might be limiting businesses' ability to switch to other chipmakers and penalizing those who do not exclusively use its artificial intelligence suite. 

Following these allegations, Nvidia’s market capitalization suffered its largest one-day loss, wiping out $278 billion, with its shares dropping by 9.5% to close at $108. 

However, after Nvidia's denial of receiving a subpoena, its shares recovered slightly, climbing 0.46% to $106.70 in after-hours trading and briefly spiking above $111. 

An Nvidia spokesperson clarified, “We have inquired with the US Department of Justice and have not been subpoenaed.” 

The company stated that it is open to addressing any questions regulators might have about its business practices, adding, “Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them.” 

Recent reports indicate that the DOJ has been questioning tech companies about Nvidia’s business practices, particularly regarding how it bundles hardware. 

This has raised concerns within the market about potential antitrust issues. 

Despite the recent volatility, Nvidia’s stock (NVDA) remains up 120.5% this year, driven by increased demand for chips used in artificial intelligence applications. 

The stock reached an all-time high of $131.88 in June. 

However, it has dropped over 17% in the last five trading days due to the recent market turbulence and potential regulatory scrutiny. 

Additionally, Nvidia is facing a revived class-action lawsuit in the U.S. Supreme Court, alleging it concealed over $1 billion in GPU sales to crypto miners. 

The lawsuit claims that CEO Jensen Huang downplayed the extent of these sales to the crypto sector. 

The ongoing legal and regulatory challenges have added uncertainty to Nvidia's outlook as it navigates potential antitrust investigations and investor concerns.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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