Chipmaker Nvidia, the blue-eyed stock of investors, lost $279 billion in a single session when it fell more than 9.5 percent on Tuesday, and was hammered further in extended trade as news broke out that the US Department of Justice sent a subpoena to the company in its probe into its antitrust practices.
This was reported by Bloomberg News, which cited people familiar with the investigation, but was yet to be acknowledged by the DoJ.
On Tuesday, as part of the broader selloff in the US markets, Nvidia share slipped to day’s low of $107.29 from day’s high of $116.21 before closing the regular session at $108. It then fell another 1.5 percent in extended trading.
The market capitalisation of the company, which rose above $3 trillion earlier this year, was $2.649 trillion, behind Apple and Microsoft.
The Bloomberg News report added that the DoJ had previously delivered questionnaires, and has now sent legally-binding requests to Nvidia. Other companies had also received subpoenas.
An Nvidia spokesperson said: “Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them.”
It was earlier reported that the DoJ launched its investigation following multiple complaints from competitors that Nvidia was abusing its position of market domination and is making it harder to switch to other suppliers. It is also penalising buyers who do not exclusively use its artificial intelligence chips.
The company’s shares are still up 141 percent so far this year.
Follow us on
