The generative AI boom, rebounding tech sector, and 154% stock growth in 2024 pushed Nvidia’s market worth over $3 trillion. Nonetheless, there are concerns regarding the viability of the AI hype cycle.
The Nvidia took some time to rise to prominence. As a matter of fact, the tech sector faced a rough 2022. Despite the tech layoffs, it commenced to rebound in the year 2023. Generative artificial intelligence is one of the main factors behind its resurgence, as evidenced by the stock market’s resurgence.
Despite Nvidia indicating that it has not received a subpoena from the Justice Department regarding an AI investigation, the report has stated that it has. Still, Nvidia stock experienced a decline on Wednesday and has sustained significant losses over the past several sessions.
The AI giant said, “We have inquired with the U.S. Department of Justice and have not been subpoenaed.”
Late on Tuesday, Bloomberg reported, quoting reliable sources, that the Department of Justice had issued subpoenas to Nvidia and other entities, requesting their furnishing of information. This would be an expansion of an ongoing antitrust probe.
Antitrust officials worry that Nvidia is making it hard for customers to switch to rival suppliers and punish those that don’t use its AI chips. The DOJ probe includes Nvidia’s planned acquisition of RunAI, which makes software for managing AI computing.
Nvidia stock fell 1.7% to 106.21 after trading as low as 104.12 and as high as 113.27.
The NVDA stock plummeted 9.5% to 108 on Tuesday, slipping decisively from its 50-day and 21-day moving averages.
Last week, Nvidia’s Q2 earnings didn’t wow, leading to a 7.7% drop.
