Nvidia denies receiving a subpoena from the DOJ, which contradicts previous reports and eases the concerns that triggered a 10% decline in the NVDA stock price.
Nvidia has denied allegations that the U.S. Department of Justice (DOJ) issued a subpoena to the AI processor giant, a rumor that precipitated a significant stock market decline yesterday. The speculation precipitated Investors’ anxiety, resulting in a 10% decline in NVDA stock on Tuesday. Nevertheless, the chipmaker’s denial has reignited optimism regarding the potential for a stock price recovery.
Nvidia Refutes Allegations of Receiving DOJ Subpoena
In response to a Bloomberg report yesterday, Nvidia has taken a bold stance in denying allegations of receiving a DOJ subpoena, according to a recent Reuters report. The report indicated that the agency had intensified its antitrust investigation into the firm, indicating that its business practices in the AI computing market are being more closely scrutinized.
Nevertheless, the allegations are contradicted by the most recent Reuters report. The report cited an Nvidia spokesperson who clarified, “We have sought clarification from the U.S. Department of Justice and have not been subpoenaed.” Nevertheless, we are prepared to address regulators’ inquiries regarding our operations. This statement directly opposes the Bloomberg report that a subpoena has been issued, which has caused a significant selloff in the company’s stock and alarmed investors.
In the interim, the alleged DOJ investigation was primarily concerned with the company’s monopoly in the AI chip industry. This has prompted industry apprehensions that the company was restricting consumer choice and pressuring buyers to use its products, as indicated by the report exclusively.
Yesterday’s negative sentiment in the stock market was reportedly exacerbated by these allegations, which reportedly sparked discussions regarding a potential penalty for the firm. Nevertheless, the market’s confidence appears to have been bolstered by the company’s recent denial of receiving any notice.
NVO Stock experiences volatility?
The stock of NVDA experienced a significant decline of over 10% yesterday due to the DOJ subpoena rumors. The stock closed at $106.21 today, down 1.66%, as the decline continued. This downward trend indicates persistent market apprehensions regarding competitive pressures and regulatory risks.
The sell-off also impacted the broader equity market and overflowed into the crypto sector, dampening investor sentiment. Nvidia’s stock decline was one of the most significant among tech equities, as noted by market observers, underscoring the vulnerability of market confidence in the presence of regulatory uncertainties.
Nevertheless, the rapid denial of the subpoena claims has prompted confident analysts to anticipate a potential rebound. The company’s response emphasizes its readiness to collaborate with any regulatory inquiries, which may assist in restoring investor confidence. Concurrently, the Nvidia stock experienced a 0.70% increase to $106.95 in the aftermarket trading session following this development.
