Nvidia Debunks DOJ Subpoena Claims Following NVDA Stock Price Crash

Nvidia has refuted claims that the U.S. Department of Justice (DOJ) issued a subpoena to the AI chip giant, a rumor that triggered a major selloff in the stock market yesterday. The speculation caused NVDA stock to decline by 10% on Tuesday, sparking investors’ concern. However, the denial from the chipmaker has fueled hope for a potential rebound in the stock price.

Nvidia Denies Claims Of Receiving DOJ Subpoena

According to a recent Reuters report, Nvidia has taken a bold step refuting rumors of receiving a DOJ subpoena, which surfaced following a Bloomberg report yesterday. The report showed that the agency had escalated its antitrust investigation into the firm, signaling heightened scrutiny of the firm’s business practices in the AI computing market.

However, the recent Reuters report contradicts the claims. The report cited a Nvidia spokesperson who clarified “We have inquired with the U.S. Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.” This statement directly contradicts the Bloomberg report that a subpoena has been issued, which has spooked the investors while triggering a massive selloff of the company’s stock.

Meanwhile, the alleged DOJ investigation primarily focused on the firm’s dominance in the AI chip sector. According to the report, this has sparked industry concerns that the firm was limiting customer choice and was pressuring buyers to use its products exclusively.

These allegations reportedly raised discussions over a potential penalty to the firm, which contributed to the negative sentiment in the stock market yesterday. However, the firm’s recent denial of receiving any notice appears to have boosted the market confidence.

NVO Stock Faces Turbulence, A Recovery Ahead?

The fallout from the DOJ subpoena rumors severely impacted NVDA stock, which closed over 10% lower yesterday. The decline extended into today, with the stock closing down 1.66% at $106.21. This downward trend reflects ongoing market concerns about regulatory risks and competitive pressures.

The selloff also affected the broader equity market and spilled over into the crypto sector, as investor sentiment was dampened. Market watchers noted that the decline of Nvidia was one of the largest among tech stocks, highlighting the fragility of market confidence in the face of regulatory uncertainties.

Despite this, the swift denial of the subpoena claims has led some analysts to predict a potential rebound. The company’s response underscores its willingness to cooperate with any regulatory inquiries, which may help restore investor confidence. Simultaneously, following this development, the Nvidia stock also soared in the aftermarket trading session, noting a surge of 0.70% to $106.95 during writing.

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Rupam Roy

Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

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