Nvidia’s investors seem more and more nervous after seeing the forecasts predicting a decrease in the spending of technology companies offering solutions based on artificial intelligence, becoming much more cautious after the earlier hooray optimism. Among other things, it is due to this nervous atmosphere that the company’s stock – which was the star of the past quarters on the stock exchange – lost more of its value on Tuesday than ever before.
On Black Tuesday, Nvidia’s stock price fell 9.5% in a single day, with which the company was worth $279 billion less than before in just a few hours – not incidentally, this became the largest one-day fall in the history of the American stock market. The fall shook the entire industry, the benchmark chip index of the Philadelphia Stock Exchange (PHLX) fell 7.75%, a decline similar to which has not been seen since 2020.
By the way, Nvidia took over the baton from Meta, which produced a historic loss on February 3, 2022 – when Mark Zuckerberg’s company lost $232 billion.
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Nvidia, the towering market leader in the segment of data center AI accelerators, trembled for the first time this year just a week ago. At that time, the company released its second business quarter results, which, although they soared beyond preliminary expectations, the extent of this was no longer enough for investors accustomed to soaring in the previous quarters.
According to analysts, however, it would be too early to sound the alarm, because the AI madness has apparently not stopped yet, and Nvidia is up 118% this year, even with the minus of the last few days.
After the trading day, moreover, the exchange rate fell further after the Citing insider sources, Bloomberg reported that the US Department of Justice’s antitrust agency had subpoenaed the company after suspicions arose that the company violated competition law during its activities and illegally established a monopoly in the data center AI chip market, where more than 80% has a market share of
According to the American legal order, this subpoena is usually the anteroom of a competition authority procedure, which is currently taking place on several fronts against the American technology companies – the first such procedure against Alphabet ended in the summer, which established the company’s search market monopoly, which had serious consequences. may affect the operation of Google.
Source: www.hwsw.hu
