US Justice Department steps up pressure on Nvidia as stock price plunges

The news

The U.S. Department of Justice has apparently taken the next step in its antitrust investigation into chipmaker Nvidia by issuing subpoenas to the company and other companies, Bloomberg reports.

The Justice Department’s reported move intensifies an investigation into whether Nvidia used its dominant position as the largest supplier of AI chips to harm competitors and induce customers to buy bundles of other Nvidia products to gain access to desirable chips.

Nvidia shares fell 9.5% on Tuesday, reducing their market capitalization by nearly $300 billion amid a broader market decline driven by worse-than-expected U.S. manufacturing data. Despite the drop, Nvidia’s stock price remains up 118% this year.