Nvidia rejects DOJ claims of antitrust subpoena as investigative reports emerge

Leading American chip manufacturer Nvidia has debunked the myth rumors of an antitrust investigation involving the U.S. Department of Justice (DOJ). The company denied receiving a subpoena related to the claims.

Following Nvidia’s announcement, its stock price rose slightly, giving investors hope.

Nvidia denies reports of antitrust subpoena

Nvidia has clarified rumors about an antitrust investigation by the U.S. Department of Justice (DOJ). Rumors have been circulating that the Department of Justice is investigating Nvidia’s marketing practices. The investigation is said to focus on Nvidia’s packaging of hardware, which could limit competition.

IN answerNvidia claimed that I have not received any subpoena from the Department of Justice.

A company spokesman said: “We reached out to the U.S. Department of Justice and have not received a subpoena.”

The technology company also stressed its openness to talks with regulators.

““We will be happy to answer any questions regulators may have about our business” A spokesperson for Nvidia said.

The company further added that its success is attributed to its merits and the value it provides to customers. Nvidia assured customers that they can choose the solutions that best suit their needs.

These statements came after Bloomberg’s publication reported that the Department of Justice has subpoenaed Nvidia as part of broader antitrust investigationInterestingly, the investigation is examining whether Nvidia’s business practices made it difficult for companies to switch to other chip suppliers, thereby limiting competition.

This caused serious concerns in the market and Nvidia warehouse price dropped significantly on the reporting date. September 3 fell by 9.5%ending the day at $108 per share.

This sharp decline caused Nvidia’s total market value to drop lose $278 billion in one day. According to Google FinanceIt was the largest one-day loss in the history of the American stock market.

Market reaction to Nvidia’s announcement

After denying the allegations, Nvidia stocks surprisingly saw a slight improvement. Nvidia (NVDA) stock rose 0.46% to $106.70 in after-hours trading. At one point, it briefly surged above $111.

The modest gain came as a relief after the company suffered its biggest single-day loss in its history, $278 billion.

According to the data, the stock is trading between $104.12 and $113.27. Despite this improvement, NVDA stock remains down more than 17% over the past five trading days.

Nvidia’s Challenges in 2024

While Nvidia remains a dominant player in the chip market, it has faced a number of challenges in 2024. One of Nvidia’s latest headaches is a potentially renewed class action lawsuit in the U.S. Supreme Court.

This lawsuit accuses Nvidia hiding more than $1 billion in graphics processing unit (GPU) sales to cryptocurrency miners. The lawsuit alleges that Nvidia CEO Jensen Huang downplayed how much company sold on cryptocurrency market.

The company is also grappling with broader market volatility. Despite these challenges, the company’s shares are up 118.76% this year, thanks in part to increased demand for chips in artificial intelligence applications.