Shares of Nvidia, a leading computer chip maker, suffered a record drop on September 3. The company’s market value decreased by $280 billion after the US Department of Justice sent an antitrust subpoena.
Nvidia’s share price fell by 9.5%, closing at $108. This is the largest one-day drop in value for any company in the history of the US stock market, according to Google Finance. After the close of trading, the stock continued to fall by another 2%, reaching $105.
The U.S. Department of Justice has issued subpoenas to Nvidia and several other companies in search of evidence of antitrust violations. Previously, the department had sent non-binding requests, but now it is demanding information in a legally binding manner.
The US antitrust authorities are concerned that Nvidia is making it difficult for businesses to switch to products from other AI chip suppliers. Pros information Bloomberg, there are suspicions that the company is punishing customers who do not exclusively use its AI services.
Nvidia denies these allegations. In response to Bloomberg’s request, the company said that it wins because of the quality of its products, as reflected in the test results, and the value for customers who can freely choose the best solutions for themselves.
Jensen Huang, CEO of Nvidia, explains that he prioritizes customers who use the company’s products in ready-to-go data centers. According to him, this prevents the accumulation of inventory and speeds up the implementation of Nvidia technologies.
Founded in 1993, Nvidia has rapidly grown to become the world’s largest manufacturer of computer chips, including those for artificial intelligence. The company’s success in creating AI infrastructure has far surpassed the achievements of its competitors. At the time of publication, Nvidia’s market capitalization was $2.65 trillion, which is 30 times higher than the former market leader Intel and 12 times higher than its competitor Advanced Micro Devices (AMD).
Source: Businessinsider, Cointelegraph