Nvidia has denied rumors about receiving a subpoena from the US Department of Justice (DOJ) over antitrust concerns.
Nvidia's Clarification
On Wednesday, the company clarified the situation after Bloomberg reported the tech giant had been pulled into a DOJ investigation. A company representative said: “We have inquired with the U.S. Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.”
Market Reaction
The Bloomberg report caused Nvidia’s stock to tumble in after-hours trading after an almost 10% decline during the regular trading session. The report didn’t specify why the DOJ might be interested in Nvidia, but it said that the company’s dominant position in the AI chip market could be a factor. According to industry estimates, Nvidia controls more than 80% of this market.
Financial Results
The company reported record quarterly revenue of $30 billion for Q2 fiscal 2025, up 122% year-over-year. This was driven by strong demand for their data center chips, with data center revenue reaching a record $26.3 billion, up 154% from a year ago. Gaming revenue was also up, reaching $2.9 billion, a 16% increase year-over-year. Nvidia announced new RTX and DLSS gaming titles and technologies like ACE for digital humans and Project G-Assist for AI-powered gamer assistance. GAAP EPS for the quarter was $0.67, up 168% from a year ago. Non-GAAP EPS was $0.68, up 152%.
Nvidia continues to insist on its readiness to cooperate with regulators, emphasizing its commitment to transparency and winning on merit. Meanwhile, the market is closely watching the developments around the company and its financial performance.
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