Nvidia Stock Slips After Report of Justice Department Subpoenas

Key Takeaways

• Investors late Tuesday digested reports that the chip giant had received subpoenas from the Justice Department as part of an antitrust investigation.
• Nvidia stock slipped nearly 2% after hours, extending the 9.5% plunge recorded at the market’s close.
• The company is scheduled to appear at an investor event on Sept. 11.

Shares of Nvidia slipped in late trading, extending losses from the regular session, as investors digested reports that the chip giant had received subpoenas from the Justice Department as part of an antitrust investigation.

Bloomberg, citing people familiar with the investigation, reported Tuesday afternoon that the government “sent subpoenas to Nvidia Corp. and other companies as it seeks evidence that the chipmaker violated antitrust laws, an escalation of its investigation into the dominant provider of AI processors.”

Shares of Nvidia (NVDA) were down nearly 2% after the news. They were down more than 9% in Tuesday’s regular session as investors sold tech stocks broadly.

Despite the day’s downturn, Nvidia’s shares have more than doubled so far this year. Last week, the company reported its latest quarterly financial results, which showed the AI giant’s run of powerful growth continuing even as some investors raised questions about growth sustainability.

“Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them,” said a Nvidia company spokesperson via email about the Bloomberg report. The Justice Department declined to comment.

The company is scheduled to appear at an investor event on Sept. 11.

UPDATE: This story has been updated to reflect new share-price information and to incorporate the response from the DOJ.

Read the original article on Investopedia.