As you may know, Nvidia has experienced a significant drop in its stock value following a court subpoena related to an antitrust investigation initiated by the U.S. Department of Justice (DOJ) concerning concerns over its dominance in the AI chip market.
Nvidia’s Shares Continue to Plummet
Nvidia’s shares dropped nearly 10% during regular trading hours, with a total market value decrease of $279 billion. Following this steep decline, Nvidia’s shares continued to fall by 2% in after-hours trading.
According to Bloomberg, the DOJ is investigating whether Nvidia is making it difficult for other suppliers to enter the AI chip market. Nvidia is estimated to hold more than 80% of the market share in data center AI chips, contributing to its significant rise in recent years.
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The company’s success is largely attributed to its CUDA programming language, developed a decade ago. This language has become a crucial tool for engineers training advanced AI models.
Among Nvidia’s major clients are tech giants like Microsoft, Alphabet, Meta, Amazon, and Tesla. The company aims to go beyond being just a hardware supplier by offering server systems and software solutions alongside its AI chips.
A company representative stated to CNBC that Nvidia’s success has been rightfully earned and denied antitrust allegations, emphasizing that customers are free to choose the best solution. The DOJ declined to comment on the investigation.
What do you think about this issue? Feel free to share your thoughts in the comments.
