The US Department of Justice’s interest in Nvidia’s activities in the market for artificial intelligence systems did not arise yesterday, but just this week Bloomberg reported that investigative bodies were moving to obtain official testimony. The news caused the company’s stock price to fall 2% after the close of trading in the United States.
Image source: NVIDIA
If we consider that before this, during the main trading session, they lost almost 10% in price, then for the company this dynamics resulted in a decrease in capitalization by almost $300 billion in one day. The active growth of Nvidia stock prices in the last couple of years is due precisely to its growing influence in the market for components for artificial intelligence systems, but if an antitrust investigation threatens its preservation, then the stock market reacts accordingly.
In June, Nvidia managed to briefly become the world’s largest publicly traded company by market capitalization. It did not maintain these positions, but as it approached the publication of quarterly reports in August, the stock price resumed its growth. However, in fact, after the release of quarterly statistics, Nvidia decreased by almost 7%, as investors were afraid of the slowdown in revenue growth in the server segment. The company receives more than 40% of its revenue from selling computing accelerators to large players in the cloud computing market. If antimonopoly authorities begin to force it to change market tactics, then this may not have the best effect on revenue. These concerns are reflected in the decline in Nvidia’s stock price in yesterday’s trading.