Nvidia refutes anti-competitive allegations amid Justice Department investigation

(MENAFN) Nvidia has firmly denied allegations of anticompetitive behavior following reports that the U.S. Department of Justice (DOJ) is investigating the company for potential violations of competition laws. According to a news paper, the DOJ has requested documents from Nvidia to examine whether the company has engaged in practices that hinder customers from switching suppliers or prevent competitors from diversifying their supply chains. In response, a spokesman for the Santa Clara-based semiconductor giant emphasized that Nvidia's success is based on merit, supported by benchmark studies and customer choices.

The news of the DOJ investigation has had a significant impact on Nvidia's stock performance. Shares of Nvidia plummeted by approximately 9.5 percent to USD108, marking its most substantial daily decline since April 19, when the stock fell by 10 percent. This drop made Nvidia one of the worst performers on the S&P 500 and Nasdaq, with its market value decreasing by USD278.9 billion to USD2.649 trillion—the largest single-day market value loss ever recorded for a U.S. company, according to Dow Jones Market Data.

Nvidia, a key player in the semiconductor industry, has been pivotal in the advancement of generative AI technology through its graphics processing units (GPUs). These GPUs are crucial for developing large language models, which are used to generate content based on simple language prompts. As of the first quarter of 2024, Nvidia held an 88 percent market share in graphics cards, underscoring its dominant position in the industry, as reported by John Peddie Research (JPR). 

MENAFN05092024000045015682ID1108639446