Nvidia has denied a report that it received an antitrust subpoena from the United States Justice Department, with its share price seeing a slight rise in after-hours trading.
“We have inquired with the US Department of Justice and have not been subpoenaed,” an Nvidia spokesperson told Cointelegraph, first reported by CNBC. “Nonetheless, we are happy to answer any questions regulators may have about our business.”
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,” the spokesperson added.
In recent weeks, the Justice Department has reportedly asked tech companies about Nvidia’s business practices — including how it bundles hardware, Reuters reported on Sept. 4, citing two sources familiar with investigator questions.
Bloomberg reported on Tuesday, Sept. 3, that the Justice Department subpoenaed the chipmaker and other companies as part of a possible antitrust investigation.
The report claimed, citing those familiar, that the government is concerned Nvidia is making it difficult for businesses to switch to other chip makers and has penalized buyers not exclusively using its artificial intelligence suite.
The report wiped $278 billion from Nvidia’s market capitalization on Tuesday, its biggest one-day loss ever, with its share price closing down 9.5% to $108.
Following its denial, Nvidia (NVDA) saw a 0.46% rise to $106.70 at the close of after-hours trading — in which it briefly spiked to over $111, according to Google Finance.
Nvidia’s share price climbed slightly on Wednesday in after-hours trading. Source: Google Finance
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NVDA has fallen over 17% in the last five trading days but is still up 120.5% this year.
It hit an all-time high of $131.88 in June, bolstered by increased chip demand for artificial intelligence applications.
Nvidia is also facing a possible revived class lawsuit in the US Supreme Court which alleged it hid over $1 billion in GPU sales made to crypto miners and CEO Jensen Huang downplayed the amount it sold to the sector.
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