The U.S. Department of Justice is investigating chip giant Nvidia's buyout of AI startup Run:ai on antitrust grounds, Politico reported on Thursday, citing five people with direct knowledge of the matter.
Downbeat economic data pushed Nvidia and the rest of the stock market lower today. The Fed's decision to not cut rates yesterday also seems to be contributing to the slide.
In after-hours trading last night, it looked like technology stocks were going to continue their winning streak.
The share price of Nvidia (NASDAQ: NVDA) seeks to build on the recent bullish momentum that saw the chipmaker clear key resistance levels in the short term.
Nvidia Corp NVDA stock valuation saw a significant jump, adding an impressive $330 billion to its market cap in just one day. This surge broke its previous record of a $277 billion gain.
If the proof is in the results, then Meta Platforms NASDAQ: META Q2 results prove that increased spending on AI pays off. Its numbers are best described as wow-worthy, reminiscent of NVIDIA's NASDAQ: NVDA outperformance over the last year.
Nvidia shares soared in recent years, and so have earnings thanks to the company's dominance in the AI chip market. Over the past few weeks, Nvidia stock dropped in the double digits.
Recent inventory data shows a buildup for key rivals such as AMD. In contrast, NVDA sits on record low inventory. Together with its higher unit price, this serves as a clear sign for robust volume and superior pricing power for NVDA.
U.S. progressive groups and Democratic Senator Elizabeth Warren pressed the Department of Justice to investigate Nvidia over competition concerns, citing the company's dominance of the market for the chips driving the artificial-intelligence boom.
Nvidia has seen its stock price fall in half two times in the last six years. It will have to meet high expectations for data center revenue next quarter.
Despite a massively positive momentum it experienced this year, which has culminated with a new all-time high (ATH) price of $135.58 in June, Nvidia (NASDAQ: NVDA) has been behaving unusually in recent days, with significant price swings reminiscent of a penny stock.
Nvidia CEO Jensen Huang repeatedly sold large numbers of shares of the company in July. However, there's a good explanation behind Huang's sales of the stock.