THE acts of Nvidia seems to be heading towards new drop of 2% this Wednesday, according to its pre-opening price, which would add to the collapse of 9.53% recorded during Tuesday’s session. This fall caused the evaporation of some 279 billion dollars (252.668 million euros) of its stock market capitalization, a sign clear of the nervousness surrounding the company at the moment.
According to information provided by ‘Bloomberg’, the United States Department of Justice served a subpoena on the company following its investigation into its dominant position in the market for chips with embedded artificial intelligence (AI).
The U.S. government is wary of Nvidia’s alleged efforts to make it difficult for its customers to switch providers or to impose penalties on those who don’t use exclusively their products.
Until now, Justice had limited its investigations to sending forms to certain companies. However, now The requests will be legally binding and will require these entities to provide data. We are therefore about to file an official complaint against the multinational.
However, this is not the only problem Nvidia is facing, as the entity has also been affected by doubts about the potential that AI offers in purely practical terms.
Some doubt that Fidelity analyst, Hyun Ho Sohnquickly dissipates, calling Nvidia a company “fantastic” with a “competent team”.
Similarly, he points out that the gap between Nvidia’s actual results and the market consensus has narrowed since August 2023, when they stood 22.32% above investors’ expectations, compared to 4.24% indicated in the latest accounts presented in August.
“Also Questions arise as to how long Nvidia can maintain its monopoly position“, the analyst comments, since “many of its biggest customers” “are also developing their own chips.” Additionally, Hyun adds that “Nvidia itself is entering the territory of many of its customers.”
