Reports that Nvidia got an antitrust request from the U.S. Department of Justice (DOJ) have been shot down. A few hours after these reports were denied, the company’s price made a small comeback.
When asked about the claims, Nvidia’s representative confirmed, “We have checked with the DOJ and have not received a subpoena. We are willing to answer regulators’ questions about our operations.”
During normal trade hours on Tuesday, news of a subpoena caused Nvidia’s stock to drop almost 10%. After the company denied the report, shares made a small comeback and ended the day up 0.46%.
The first story, which caused the stock to drop, said that the DOJ was looking into Nvidia for practices that might be unfair to competitors, such as making it hard for companies to switch to other chip suppliers and punishing companies that don’t only use its AI technology.
Even though the market is unstable, Nvidia has said that its success is due to the technology advances it makes and the value it provides to customers. The company’s price hit a record high in June because of a lot of people wanting to buy its AI chips, but it has been going up and down lately.
Nvidia may also have to deal with legal problems because of a class-action case about the GPUs it sold to bitcoin miners. The result of this case and the ongoing scrutiny by regulators could have a bigger effect on how well the company’s stock does.
