According to Cointelegraph, Nvidia experienced its largest one-day market capitalization loss, shedding over $280 billion in value following a reported antitrust subpoena from the United States Department of Justice (DOJ). On September 3, Nvidia's shares dropped by 9.5%, closing at $108, which resulted in a $278 billion reduction in its market cap. This event marks the most significant single-day value loss for any stock in the history of the US share market, based on Google Finance data. The decline continued in after-hours trading, with shares falling more than 2% to a low of $105.
The sharp drop in Nvidia's stock price occurred as the DOJ issued a subpoena to Nvidia and several other companies, seeking evidence of potential violations of US antitrust laws. Bloomberg reported on September 3, citing sources familiar with the investigation, that the DOJ had previously sent non-binding questionnaires to Nvidia for additional information. The subpoena represents an escalation in the investigation, legally obligating recipients to provide information and potentially leading to a formal complaint against the chipmaker.
US antitrust officials are concerned that Nvidia may be making it difficult for businesses to switch to other artificial intelligence and computer chip providers and penalizing buyers who do not exclusively use its AI chips. As part of the investigation, DOJ officials have contacted other tech firms, including Nvidia's largest investor, Microsoft, for further information. In response, Nvidia stated in an emailed statement to Bloomberg, "Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them." Nvidia CEO Jensen Huang emphasized that priority is given to customers who use Nvidia products in ready-to-go data centers to prevent stockpiling and expedite the installation of the company's technology.
Founded in 1993, Nvidia has quickly risen to become the world's largest manufacturer of computer chips, particularly those used in AI processes. Nvidia's success in developing AI-specific infrastructure has allowed it to significantly outperform its rival chipmakers. As of the time of publication, Nvidia's market cap stands at $2.65 trillion, making it 30 times larger than former market leader Intel and 12 times larger than competitor Advanced Micro Devices (AMD).
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