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Nvidia responds to reports that the U.S. Department of Justice has subpoenaed the company for antitrust violations, resulting in a loss of $279 billion in market value.
New York – Is the hype around Nvidia over? There are increasing signs that this could be at least temporarily suspended. The shares of the US company under CEO Jensen Huang are again approaching the lows of early August. Media reports referring to a Bloombergnews, caused the share price to collapse recently. Now the company is commenting on this.
Nvidia responds to Bloomberg allegations of US antitrust investigation
The US media company had reported that the US Department of Justice had sent Nvidia subpoenas as part of an antitrust investigation. Nvidia has now denied this: the company is in contact with the authority but has not been subpoenaed. “We have inquired with the US Department of Justice and have not been subpoenaed. Nevertheless, we are happy to answer any questions the regulators may have about our business,” the chip company said in response to the media reports.
The US antitrust authorities are following a report by Wallstreet Online According to concerns that Nvidia is making it difficult for customers to switch to other providers and also penalizing them if they do not only use Nvidia’s TO-chips. The report is based on insider information that did not want to be named. Regulators are also looking into the purchase of RunAI, an AI software company, to see if the deal makes it harder for customers to switch from Nvidia chips. They are also investigating whether Nvidia is giving preferential treatment and cheaper prices to customers who only use its technology or buy complete systems.
Expert: Nvidia faces challenges after stock market rally
Nvidia has established itself as a market leader, increasing its market capitalization from one trillion to three trillion dollars in just 13 months. The company has repeatedly celebrated records on the stock market. By comparison, Apple needed three and a half years to achieve this. The damage caused by the antitrust headlines was, according to Wallstreet Online However, the impact was already large: Nvidia shares fell by 9.5 percent, resulting in a massive loss of $279 billion in market value.
But Nvidia’s problem is that there isn’t much on the calendar that could provide a positive catalyst, said Michael Kirkbride, portfolio manager at Evercore Wealth Management. “We’re in a bit of a void right now. We’re through earnings and there’s a lot of economic data coming this month. With that in mind, you need to be very cautious,” he said. “When you’re in a trading vacuum, it becomes a very short-term market that only reacts to the first shot.”
After quarters in which Nvidia far exceeded analyst forecasts, there were no major surprises this time. (Archive image) © Andrej Sokolow/dpa
Nvidia justifies its market leadership: “Best solution for customers”
The company told the media that Nvidia wins solely through its performance, which is reflected in the test results and the benefits for customers. In addition, customers can choose the best solution for themselves. Nvidia simply has the best offer. According to Bloomberg The US Department of Justice regularly sends so-called “civil investigative requests,” which often act like a subpoena. Such a request was also sent to Nvidia to obtain information about the acquisition of RunAI and the company’s chip business.
