Nvidia Refutes Claims of DOJ’s Antitrust Subpoena as Investigation Reports Surface

Leading US chipmaker Nvidia has debunked rumors about an antitrust investigation involving the US Department of Justice (DOJ). The company denied receiving a subpoena related to the claims.

Following Nvidia's statement, its share price increased slightly, giving investors hope.

Nvidia Denies Antitrust Subpoena Reports

Nvidia clarified the rumors of an antitrust investigation by the US Department of Justice (DOJ). The rumors spreading suggested that the DOJ was investigating Nvidia's market practices. The supposed investigation was rumored to focus on Nvidia's bundling of hardware, which could limit competition.

In response, Nvidia claimed it had not received any subpoena from the DOJ.

The company's spokesperson said, We have inquired with the US Department of Justice and have not been subpoenaed."

The tech company also emphasized its openness to discussions with regulators.

We are happy to answer any questions regulators may have about our business," Nvidia's spokesperson said.

Further, the company added that its success is attributed to its merit and the value it provides to customers. Nvidia reassured clients that they can select the solutions that best meet their needs.

These statements came after Bloomberg reported that the DOJ had subpoenaed Nvidia as part of a broader antitrust investigation. Notably, the investigation explores whether Nvidia's business practices made it harder for companies to switch to other chip providers, stifling competition.

This triggered significant market concerns, and Nvidia's stock price dropped significantly on the day of the report. On September 3, it fell by 9.5%, ending the day at $108 per share.

This sharp drop caused Nvidia's total market value to lose $278 billion in just one day. According to Google Finance, this was the most significant single-day loss ever recorded for any stock in the history of the US stock market.

Market Reaction to Nvidia's Statement

After denying the allegations, Nvidia's stock surprisingly saw a slight recovery. Nvidia (NVDA) stock price increased by 0.46%, reaching $106.70 in after-hours trading. At one point, it briefly spiked to over $111.

This modest rise offered relief after the company experienced its most significant single-day loss of $278 billion.

According to the data, the stock price ranges between $104.12 and $113.27. Despite this recovery, NVDA remains down over 17% in the last five trading days.

Nvidia's Challenges in 2024

Though Nvidia remains a dominant player in the chip market, it has faced a series of challenges in 2024. One of Nvidia's recent struggles includes a potentially revived class-action lawsuit in the US Supreme Court.

The lawsuit accuses Nvidia of hiding over $1 billion in sales of graphics processing units (GPUs) to cryptocurrency miners. The suit alleges that Nvidia's CEO, Jensen Huang, downplayed how much the company sold to the crypto market.

Additionally, the company is contending with broader market volatility. Despite these challenges, the company's stock has soared 118.76% this year, partly thanks to increased demand for chips in artificial intelligence applications.

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