Nvidia Faces Record One-Day Loss Following US Antitrust Investigation Subpoena

Nvidia experienced a significant market downturn, losing approximately $280 billion in market value following an antitrust subpoena from the U.S. Department of Justice (DOJ). This marked the largest single-day loss in U.S. stock market history, with Nvidia’s shares plummeting 9.5% to close at $108 on September 3, according to data from Google Finance. The stock further declined by over 2% in after-hours trading, reaching a low of $105.

The DOJ’s actions are part of a broader investigation into potential antitrust violations by Nvidia, intensifying with the recent issuance of subpoenas to Nvidia and other related companies. Initial inquiries involved non-binding questionnaires, but the subpoenas now legally compel the companies to provide detailed information, indicating a more serious phase of the investigation.

Reports suggest that the U.S. government is concerned Nvidia may be hindering competition in the artificial intelligence and computer chip markets, potentially punishing customers who do not exclusively use its services. To further its investigation, the DOJ has also reached out to other major tech companies, including Microsoft, a significant Nvidia investor.

In response to the subpoena, Nvidia asserted that its success is based on the merit of its products and benchmarks, emphasizing that customers have the freedom to choose the best solutions for their needs. Nvidia CEO Jensen Huang highlighted the company’s strategy of prioritizing customers who deploy Nvidia technology in data centers, aiming to prevent stockpiling and facilitate faster installations.

Founded in 1993, Nvidia has become the leading global manufacturer of computer chips, especially those tailored for AI applications, significantly outperforming competitors like Intel and Advanced Micro Devices. At the time of reporting, Nvidia’s market capitalization stood at $2.65 trillion, dwarfing its rivals.

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