Nvidia has officially denied reports that it received an antitrust subpoena from the US Department of Justice, following which the company's shares saw a slight rise in after-hours trading.
Nvidia's Statement
An Nvidia spokesperson stated, 'We have inquired with the US Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.' The spokesperson added, 'Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them.'
Market Value Decline
According to reports, the US Department of Justice recently asked tech companies about Nvidia's business practices, including how it bundles hardware. On September 3, Bloomberg reported that the Justice Department subpoenaed Nvidia and other companies as part of a possible antitrust investigation. This report caused Nvidia's market capitalization to drop by $278 billion in one day, with shares falling 9.5% and closing at $108.
Current Situation and Outlook
On September 4, Nvidia (NVDA) shares closed down 1.66% at $106.21 but saw a 0.75% rise to $107.01 in after-hours trading, with a brief spike above $111. Despite a 17% drop over the last five trading days, NVDA shares are still up 120.5% this year. In June, shares hit an all-time high of $131.88, driven by increased chip demand for artificial intelligence applications.
Despite the recent sharp decline in stock value, Nvidia remains a leading player in the tech market, showing significant annual growth.
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