Nvidia Issues Subpoenas from Justice Department as Part of Antitrust Investigation

The U.S. Department of Justice (DOJ) has issued subpoenas for Nvidia (NVDA) and other companies on Tuesday. The subpoenas come as the Justice Department continues its antitrust investigation into Nvidia over its dominance in the market for artificial intelligence (AI) processors, according to a report BloombergIn response, Nvidia shares traded lower on Wednesday, deepening Tuesday’s sharp decline.

Bloomberg reported, citing people familiar with the matter, that the subpoenas were sent to Nvidia and other technology companies to gather information and determine whether the California-based semiconductor company is actually making it harder for customers to switch suppliers and penalizing those who do not exclusively use its chips.

“Nvidia wins on the merits, as reflected in our benchmark results and the value to customers who can choose the best solution for them,” the company said in an emailed statement to Bloomberg. The Justice Department declined Bloomberg’s request for comment.

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The subpoenas reportedly bring the Justice Department one step closer to filing a formal complaint.

Are Nvidia shares worth buying, selling or holding?

Even though Nvidia has pulled back sharply in recent weeks, it is still up nearly 120% this year and has been a market slayer for a long time. And Wall Street still thinks it is one of best stocks to buy.

According to S&P Global Market InformationThe average analyst price target for NVDA stock is $148.66, implying an implied upside of about 40% to current levels. Additionally, the consensus recommendation is Strong Buy.

Financial services firm CFRA Research gave the semiconductor company’s shares a Buy rating and set a $139 price target.

CFRA Research analyst Angelo Zino said in an Aug. 29 note that the company’s better-than-expected second-quarter financial results and optimistic third-quarter outlook increase confidence in demand for its H100 and H200 chips ahead of next year’s launch of Blackwell chips.

“Bearers will point to slowing sequential demand, recent margin pressures, and cyclical concerns,” he adds. “While these concerns remain, investors should focus more on structural AI gains and total addressable market expansion, higher data center mix compared to previous cycles, and rising demand from non-hyperscalers.”