Nvidia Denies DOJ Antitrust Subpoena Amid Market Volatility

Nvidia has denied reports that it received an antitrust subpoena from the U.S. Department of Justice (DOJ). Despite the denial, Nvidia’s share price saw a slight rise in after-hours trading.

Nvidia's Response to DOJ Subpoena Rumors

An Nvidia spokesperson addressed the reports in a statement: “We have inquired with the U.S. Department of Justice and have not been subpoenaed.” The spokesperson added that Nvidia remains open to answering any questions regulators may have about its business, emphasizing that the company "wins on merit" and provides customers the freedom to choose the best solution for their needs.

DOJ’s Antitrust Inquiry into Nvidia’s Practices

In recent weeks, the DOJ has reportedly questioned tech companies about Nvidia’s business practices, particularly regarding how it bundles hardware. According to a Reuters report on September 4, investigators have asked about Nvidia’s practices and whether it makes it difficult for businesses to switch to other chipmakers.

A Bloomberg report from September 3 also suggested that the DOJ had subpoenaed Nvidia and other companies as part of a potential antitrust investigation. The report raised concerns that Nvidia may penalize customers who do not exclusively use its AI solutions and could be limiting competition in the chipmaking sector.

Impact on Nvidia's Market Value

The news of the potential investigation had a significant effect on Nvidia’s stock, causing the company’s market capitalization to drop by $278 billion on September 3—the largest one-day loss in its history. Nvidia’s share price fell 9.5% to $108 by the close of the day.

However, after denying the DOJ subpoena reports, Nvidia’s stock saw a slight recovery in after-hours trading, rising by 0.46% to $106.70 and briefly spiking to over $111.

Nvidia's Strong 2024 Performance Despite Recent Decline

Despite the recent volatility, Nvidia remains one of the top performers in 2024, with its stock up 120.5% for the year. The company reached an all-time high of $131.88 in June, driven by increasing demand for chips used in artificial intelligence applications.

Ongoing Legal Battles for Nvidia

Nvidia may also face renewed legal challenges. The U.S. Supreme Court is considering reviving a class-action lawsuit that accuses the company of hiding over $1 billion in graphics processing unit (GPU) sales made to cryptocurrency miners. The lawsuit claims that Nvidia’s CEO, Jensen Huang, downplayed the extent of the company’s involvement in the crypto mining sector.

For additional details, you can refer to yesterday’s report on this topic.