Nvidia shares, a leading computer chip manufacturer, experienced a historic drop on September 3rd. The company's market value decreased by $280 billion after the U.S. Department of Justice issued an antitrust subpoena.
Nvidia's stock price fell by 9.5%, closing at $108. This marks the largest single-day loss of market value for any company in the history of the American stock market, according to Google Finance. After trading ended, the shares continued to slide an additional 2%, reaching $105.
The U.S. Department of Justice has served subpoenas to Nvidia and several other companies as part of its investigation for potential antitrust violations. Previously, the agency issued non-binding requests, but it now demands information in a legally enforceable manner.
U.S. antitrust authorities are concerned that Nvidia is obstructing businesses from transitioning to products from other artificial intelligence chip suppliers. According to Bloomberg, there are allegations that the company penalizes customers who do not exclusively use its AI services.
Nvidia has denied these accusations. In a response to Bloomberg's inquiry, the company stated that it succeeds due to the quality of its products, which is reflected in testing results and the value for customers who can freely choose the best solutions for themselves.
Jensen Huang, the CEO of Nvidia, explains that he prioritizes clients who utilize the company's products in ready-to-use data centers. According to him, this prevents stockpiling and accelerates the adoption of Nvidia technologies.
Founded in 1993, Nvidia has rapidly become the world's largest computer chip manufacturer, particularly for artificial intelligence processes. The company's success in building infrastructure for AI has significantly outpaced the achievements of its competitors. At the time of publication, Nvidia's market capitalization stood at $2.65 trillion, which is 30 times larger than that of former market leader Intel and 12 times greater than rival Advanced Micro Devices (AMD).
Source: Businessinsider, Cointelegraph
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