Nvidia has lost a record $280 billion after it received a subpoena from the US Department of Justice for alleged antitrust violations.
After the news became public, Nvidia lost a whopping $280 billion of its market capitalization in one day — September 3rd. Investors and analysts called the event the biggest drop in the history of the US stock market. The company's stock continued to fall by more than 2%, stopping at a low of $105 after the trading. Such a decline in market capitalization caused panic among investors, prompting them to look for ways to withdraw their investments from Nvidia.
Not only Nvidia but also several other companies received subpoenas from the U.S. Department of Justice, requesting they provide the information necessary for the investigation under duress. The reason for the special attention to Nvidia was the assumption that the company does not give enough space in the market for AI chips from other manufacturers. The company itself denies these accusations and says that its leading position in the market is due to the quality of its products.
Nvidia quickly took a leading position in the computer chip market soon after it was founded in 1993. When it comes to AI technologies produced by the company, Nvidia has made a much bigger step than its competitors Intel and AMD. Therefore, doubts about the appropriateness of the charges are justified.
