Nvidia's market cap continues to decline after a significant drop in post-market trading.
- Nvidia's shares dropped 2% in extended trading following a Bloomberg report that the company received a subpoena from the Department of Justice as part of an antitrust investigation.
- The chipmaker's market cap decreased by $279 billion after the stock dropped nearly 10% during trading.
After Bloomberg reported that the company received a subpoena from the Department of Justice as part of an antitrust investigation, shares fell 2% in extended trading.
Nvidia's market cap dropped by $279 billion after the company experienced a nearly 10% decline during regular trading. Despite this, the DOJ probe has not yet led to a formal complaint, and the agency is investigating whether Nvidia makes it difficult for customers to switch to other suppliers of AI chips. According to industry estimates, Nvidia has over 80% of the market for data center AI chips.
Nvidia's top customers are primarily cloud companies and internet giants, such as Microsoft, Alphabet, Meta, Amazon, and Tesla.
Nvidia's AI chips are in high demand, so the company has introduced new enterprise software subscriptions and promoted its networking products as essential add-ons to maximize the performance of its chips.
Representatives from Nvidia and the DOJ declined to comment to CNBC.
Technology
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