Chip giant Nvidia denies suspicions of a subpoena, says it is “happy to answer any questions regulators may have.” What do we know so far?
Nvidia denies being subpoenaed
Nvidia, the superb. Nvidia, which has, in recent quarters, posted results that exceeded all financial analysts' predictions. Nvidia, the most capitalized company in the world. But also, Nvidia, which has just experienced the biggest drop in market capitalization in the history of the American financial markets.
The drastic 10% drop in Nvidia shares was triggered by a report from Bloomberg, which stated that the company had received a subpoena from the US Department of Justice (DOJ).
However, Nvidia has denied these accusations. by retorting in a press release that it has “ not been subpoenaed “and she will be happy” to answer any questions that regulators may have » on his activity.
Regardless, the damage has been done. As evidenced by the $278 billion in market capitalization lost on Tuesday, investors do not like doubt and may decide to turn their backs on Nvidia until this matter is clarified.
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What could be blamed on Nvidia?
Although The company's latest financial results, published at the end of last week, have once again exceeded financial analysts' forecasts, Nvidia shares took a hit Tuesday amid concerns over a potential subpoena.
According to anonymous sources cited by Bloomberg, the US Justice Department has sent a subpoena to the company. for the purpose of obtaining information about Nvidia's acquisition of RunAI and certain aspects of its chip business.
Regulators are concerned that Nvidia could gain an uncompetitive advantage in its industry by offering preferential pricing to customers who use its technology exclusively or buy its complete systems.
Although this subpoena is denied by Nvidia, this case raises questions and deserves clarification to reassure investors.
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Source: Bloomberg
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide weekly fundamental analysis.
Theo Zananiri
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