#NvidiaStock #AntitrustProbe #AIChips
Nvidia's stock experienced a significant decline in both regular and after-hours trading, wiping out a staggering $279 billion from its market capitalization. This drop was triggered by a report from Bloomberg indicating that the Department of Justice (DOJ) has issued a subpoena to Nvidia as part of an antitrust investigation.
The DOJ is probing whether Nvidia is creating obstacles for customers who wish to switch to alternative AI chip suppliers. Nvidia commands over 80% of the market for AI chips used in data centers, a position it secured well before rivals like AMD and Intel began to invest seriously in this area. The company's significant growth is closely linked to its stronghold in the AI chip market for data centers.
Nvidia counts many leading cloud service providers and tech giants among its primary clients, including Microsoft, Alphabet, Amazon, and Tesla. As demand for its AI chips has surged, Nvidia has also launched new enterprise software subscription services and promoted its networking products as vital complements to maximize the performance of its chips.
The latest iterations of Nvidia's chips may come pre-installed within specially designed server racks, highlighting the company's strategy to transition from being solely a component supplier to an integrated systems provider.
Original Article: https://www.cnbc.com/2024/09/03/nvidia-slides-in-post-market-trading-after-drop-wiped-out-300-billion.html
Leave a Reply