Nvidia Corp. shares fell nearly 3% in pre-market trading on the Nasdaq, continuing a 10% drop seen during Tuesday’s regular trading session and an additional decline of approximately 2.4% in extended hours trading. This downturn follows reports that the artificial intelligence (AI) chipmaker received subpoenas from the U.S. Department of Justice as part of an antitrust investigation.In June, after launching its next-generation AI chips amid rising competition and significant global demand, Nvidia surpassed a $3 trillion market valuation. This initially made it the second most valuable company, overtaking Apple Inc., and later, it surpassed Microsoft’s market value to become the most valuable company.With the recent decline in stock price, Nvidia’s valuation has decreased to $2.649 trillion, now trailing Apple’s $3.387 trillion and Microsoft’s $3.043 trillion valuations.Bloomberg, citing sources familiar with the matter, reported that the subpoenas were issued to Nvidia and other companies as investigators sought evidence of potential antitrust violations by the dominant AI processor provider. This development marks an escalation in the investigation.The news surfaces ahead of Nvidia’s scheduled appearance at an investor event on September 11.Nvidia’s shares had already taken a hit last week after the company issued a lower sequential margin forecast for the third quarter, despite maintaining its fiscal 2025 margin outlook. This happened even after Nvidia reported significantly higher profits in its second quarter with more than doubled revenues, and announced a substantial $50 billion share repurchase authorization without an expiration date.The company reported a 122.4% increase in second-quarter revenues, driven by strong demand for AI chips.Jensen Huang, founder and CEO of Nvidia, stated, “Hopper demand remains strong, and the anticipation for Blackwell is incredible. Nvidia achieved record revenues as global data centers operate at full capacity to modernize the entire computing stack with accelerated computing and generative AI.”On the Nasdaq, NVDA closed Tuesday’s regular trading session at $108.00, down $11.37 or 9.53%. In after-hours trading, the stock further declined by $2.60 or 2.41%.In pre-market activity on Wednesday, shares were trading at $105.13, down 2.66%.The material has been provided by InstaForex Company – www.instaforex.com
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