Nvidia (NVDA) reported in the last few hours which did not receive a subpoena from the U.S. Justice Department, issuing a statement a day after press reports indicated that the U.S. government had contacted the company as part of a possible antitrust investigation.
“We have consulted with the US Department of Justice and have not been subpoenaed,” a spokesman for Nvidia“However, we are happy to answer any questions regulators may have about our business.”
The reported investigation added to recent pressure on Nvidia shares. The stock ended the previous session down 1.6%, extending Tuesday’s 9.5% decline that wiped roughly $279 billion off Nvidia’s market capitalization.
The latest drop comes after the chipmaker posted fiscal second-quarter results that beat analysts’ estimates but may not have met high market growth expectations for the AI darling of investors.
Nvidia’s control of the market
Despite recent weakness, Nvidia shares have more than doubled so far this year on rising demand for its AI chips.
Nvidia currently controls more than 80% of the market for AI chips for data centers, but argues that its success is based on the merit of its products, highlighting their performance and the value they provide to customers, who have the freedom to choose between different solutions.
Although no formal charges have been filed, analysts point out that such investigations, as seen in the past with large corporations such as Microsoft or Alphabet, They tend to last over time and do not have a significant impact on the long-term share price.
In the short term, however, they warn that the news flow could generate volatility in the value of the shares, so it is important to closely monitor any developments in the case.
Source: Ambito
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