Nvidia has fallen to its lowest levels since late May as concerns about the economy hit the technology sector.
Despite a 17% drop from its peak, Nvidia (NASDAQ: NVDA ) stock remains higher than three months ago. The recent decline seems excessive, as Nvidia continues to supply chips to major mega-cap AI players and will continue to do so for a long time.
The U.S. Department of Justice opened an an antitrust probe into Nvidia to investigate complaints that the chip giant allegedly abused its market dominance in AI chips, The Information reported. The DOJ has reached out to Nvidia's competitors such as AMD to gather information about the complaints, according to the report published on Thursday.
It never seems to fail. For the past year and a half, each and every Nvidia (NASDAQ: NVDA ) stock selloff is soon followed by a full recovery.
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It's Nvidia's NVDA -6.67%decrease; red down pointing triangle market. Everyone else just lives in it—though not nearly as well.
At its peak, artificial intelligence (AI) titan Nvidia added more than $3 trillion in market cap. Investors have, without fail, overestimated the adoption and utility of every perceived-to-be game-changing technology or trend for three decades.
Nvidia faces DOJ scrutiny over its $700 million acquisition of Israeli AI startup Run:ai. The investigation is part of a broader crackdown on Big Tech's market dominance.
Not all chip firms are benefitting from the boom in artificial intelligence, earnings show, underscoring the complexities of the semiconductor supply chain. Companies like Nvidia and AMD are benefitting from companies training AI models, while chip manufacturers such as TSMC have also received a boost.
Antitrust officials at the U.S. Department of Justice are investigating complaints over Nvidia allegedly abusing its market dominance in selling chips that power artificial intelligence, The Information reported on Thursday.
Nvidia's stock has more than doubled since the start of the year. However, experts told Business Insider that the chip giant may not always be on the up and up.
Nvidia stock saw big sell-offs today, but the pullback came after big gains on Wednesday. Today's bearish pivot on the stock was spurred by concerns that there's still substantial risk for recession in the near term.