NVIDIA shares fall 10% on news of DOJ antitrust probe
NVIDIA shares lost about 10% of their value today, wiping out $278 billion in market cap — a new record for a public company. Investors looked for reasons for the sharp decline, citing the ISM report that showed industrial inventories rising to levels not seen since the pandemic began. There were also concerns about the company's declining margins as Blackwell expands its chip production.
However, the main reason for the stock collapse came later: Bloomberg reported that the US Department of Justice (DOJ) had officially called NVIDIA to testify in an antitrust investigation. Information about this was most likely known to a certain circle of investors in advance, which triggered the stock collapse. This event has already attracted the attention of the SEC for a possible investigation.
DOJ is focused on NVIDIA's efforts to become a leader in artificial intelligence, offering both hardware solutions like the H100 accelerators and upcoming GB200 chips, and software solutions for training AI models and optimizing data centers.
