Stock Plunge Nvidia "Has Never Received an Antitrust Subpoena"

CNBC Reports Citing Nvidia Spokesperson

Recently, Nvidia, a leader in artificial intelligence (AI), has denied allegations related to the U.S. Department of Justice's antitrust investigation, which had been one of the negative factors affecting its stock price.

On the 4th (local time), CNBC, citing an Nvidia spokesperson, reported that Nvidia has never received a subpoena from the Department of Justice. However, the Nvidia spokesperson stated, "Nevertheless, if we are investigated, we are willing to answer any questions the regulatory agency may have about our business."

Earlier, Bloomberg News reported that the U.S. Department of Justice had sent a subpoena to Nvidia for an antitrust violation investigation. Nvidia is a company that has achieved vertical integration through its AI semiconductor graphics processing units (GPUs) and software platform CUDA, securing a dominant position in the industry. Some competitors are reportedly claiming that Nvidia has engaged in unfair practices by exploiting its market-dominant position.

Nvidia's stock price fell nearly 10% the previous day and dropped another 1.6% on the same day. Its market capitalization shrank to $2.605 trillion, moving further away from the $3 trillion mark. This decline was driven not only by the antitrust investigation but also by concerns over an AI bubble and economic recession fears, which collectively fueled the sell-off.

Michael Kirkbride, an analyst at Evercore Wealth Management, said, "The problem with Nvidia's stock is that there are not many upcoming catalysts that could be positive," adding, "Earnings reports are over, and many economic indicators are scheduled to be released this month, so caution is needed before then."

Ben Wright, an analyst at Melius Research, stated, "The future direction of Nvidia's stock will depend on the next six months," and added, "Nvidia needs to demonstrate margin performance and the potential to sustain growth through 2026."