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Nvidia Stock Extends Losses After Report of DOJ Subpoenas

Nvidia's headquarters.

Loren Elliott / Bloomberg / Getty Images

Key Takeaways

  • Nvidia shares lost ground Wednesday, extending Tuesday's losses following reports the U.S. Department of Justice (DOJ) sent subpoenas to the chipmaker as part of an antitrust investigation.
  • The decline in Nvidia's stock price also comes after the chipmaker's sales forecast may have fallen short of investors' lofty expectations, despite beating analysts' estimates.
  • The recent downturn in Nvidia stock could intensify investor scrutiny of other AI stocks, with investors likely to be watching Broadcom's earnings Thursday for signs of strong AI demand.

Nvidia (NVDA) shares lost ground Wednesday, extending Tuesday's losses following reports U.S. regulators sent subpoenas to the maker of 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) chips as part of an 澳洲幸运5开奖号码历史查询:antitrust investigation.

The chipmaker's stock was down about 1% after the opening bell Wednesday, after tumbling 9.5% Tuesday. The stock has had a 澳洲幸运5开奖号码历史查询:rough start to September, a🍨mid concerns Nvidia's sales forecast may have fallen short of investors' lofty expectations, despite exceeding analysts' estimates.

Nvidia's Dominance in Market for AI Chips Under Regulator Scrutiny

The U.S. Department of Justice (DOJ) 澳洲幸运5开奖号码历史查询:reportedly sent subpoenas to Nvidia, examining whether the company's actions warrant a formal antitrust investigation. A𒆙 potential antitrust case would likely focus on Nvidia's dominanc💜e in the market for AI chips.

An Nvidia spokesperson told Investopedia that the chipmaker "wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them." The DOJ declined to comment.

What Nvidia's Losses Could Mean for AI Stocks

The recent fall in Nvidia's stock price comes after the chipmaker released fiscal 澳洲幸运5开奖号码历史查询:second-quarter results that exceeded analysts' estimates, but may have 澳洲幸运5开奖号码历史查询:fallen short of invest꧋ors' lofty expectations for growܫth.

The downturn in AI darling Nvidia's stock price could intensify scrutiny of 澳洲幸运5开奖号码历史查询:other AI stocks ahead of Broadcom's (AVGO) earnings, due after the bell Thursday, with investors likely to be watchi✨ng closely for signs of strong AI demand.

Analysts have 澳洲幸运5开奖号码历史查询:remained bullish on Nvidia stock, citing 澳洲幸运5开奖号码历史查询:high dema🅷nd for the new Blackwell ൩system. Despite recent losses, Nvidia shares have more than doubled since the start of the year on surging demand for its AI chips.

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