The AI chip manufacturer Nvidia has denied reports of receiving a subpoena from the US Department of Justice related to alleged antitrust violations. This was reported by CNBC, citing a company representative.
“We have contacted the US Department of Justice and have not received a subpoena. However, we are happy to answer any questions regulators may have about our business,” Nvidia stated.
Earlier, Bloomberg reported that the chipmaker and other companies had been asked to provide information as part of an antitrust investigation. Authorities are concerned that Nvidia allegedly hinders partners from switching to other suppliers and penalizes customers for using competitors’ chips.
On Tuesday, shares of the chip manufacturer fell by 9.53% even before the data was published. Following the report of the investigation, they dropped another 2.41% in after-hours trading. Shares of other chip manufacturers also declined.
Back in early August, hedge fund Elliott Management stated that Nvidia is “in a bubble,” and the AI technology driving the company’s stock price is “overvalued.”
At the end of August, Nvidia reported revenue of $30.04 billion for the second quarter, against the expected $28.7 billion, yet the company’s shares fell by 7% in after-hours trading.
In June, the firm became the most valuable company in the world with a market capitalization of $3.34 trillion.