Nvidia slides further in post-market trading after plunge that wiped out almost $300 billion in market cap

Nvidia slides further in post-market trading after plunge that wiped out almost 0 billion in market cap


Nvidia CEO Jensen Huang speaks during Computex 2024 in Taipei on June 4, 2024. 

I-hwa Cheng | AFP | Getty Images

Nvidia shares fell 2% in extended trading after Bloomberg reported that the company received a subpoena from the Department of Justice as part of an antitrust investigation.

The slide comes after Nvidia dropped nearly 10% during regular trading, wiping $279 billion off its market cap.

The DOJ probe has not reached the stage of a formal complaint, according to Bloomberg, and the agency is asking questions about whether Nvidia makes it harder to switch to other suppliers of AI chips. Nvidia has over 80% of the market for data center AI chips, according to industry estimates.

Nvidia’s huge rise in recent years has been directly tied to its dominance in AI chips for data centers, established years before competitors AMD and Intel started taking the category seriously. Nearly a decade ago, Nvidia developed a programming language for its chips, called CUDA, which is a key tool for engineers who train advanced AI models like the one at the heart of ChatGPT.

Many of Nvidia’s top customers are cloud companies as well as internet giants, including Microsoft, Alphabet, Meta, Amazon, and Tesla.

As Nvidia’s AI chips have become a hot commodity, the company has released new enterprise software subscriptions and marketed its networking products as important compliments to get the most out of its chips.

Recent versions of Nvidia’s chips can come pre-installed in entire Nvidia-designed server racks, an example of Nvidia’s effort to move from being a mere parts supplier to an entire systems provider.

Representatives from Nvidia and the DOJ declined to comment to CNBC.



Source

‘Superman,’ ‘F1’ both cross 0 million at the global box office
World

‘Superman,’ ‘F1’ both cross $500 million at the global box office

Rachel Brosnahan and David Corenswet star as Lois Lane and Superman in Warner Bros.’ “Superman.” Warner Bros. Discovery Warner Bros. Discovery had a bountiful weekend at the global box office. The studio had two films cross the $500 million mark worldwide — “Superman” soared to $502 million and Apple’s “F1,” which Warner Bros. distributed, topped […]

Read More
Marvel’s ‘Fantastic Four: First Steps’ opens to 8 million domestically
World

Marvel’s ‘Fantastic Four: First Steps’ opens to $118 million domestically

(L-R): Ebon Moss-Bachrach as Ben Grimm/The Thing, Vanessa Kirby as Sue Storm/Invisible Woman, Pedro Pascal as Reed Richards/Mister Fantastic and Joseph Quinn as Johnny Storm/Human Torch in Marvel’s “The Fantastic Four: First Steps.” Disney What superhero fatigue? Twice in one month, a comic book film has rocketed to the top of the box office, debuting […]

Read More
I’m a travel expert who has visited 70 countries—these 7 phrases make you sound like ‘an obnoxious American’
World

I’m a travel expert who has visited 70 countries—these 7 phrases make you sound like ‘an obnoxious American’

I know what it’s like to have inconsiderate houseguests — the kind where you can’t wait for them to leave. I don’t ever want to be that person when I’m in another country.  I’ve been traveling almost as long as I’ve been alive. I’ve made it to all seven continents, 70 countries, and 47 U.S. […]

Read More