US Market: Nvidia stock brought down by 9.5% in a single day trading session, Amides Nvidia’s CEO Jensen Huang loses $10 billions meanwhile.
The Nvidia cost dropped and Jensen Huang, CEO of Nvidia, losing $10 billion in a day is likely due to a drop in Nvidia’s stock. This may be caused by different components, such as:
1) Nvidia’s stock dropped down might due to the report that the US Department of Justice (DoJ) had sent subpoenas to the company as portion of an progressing antitrust investigation.
The US Department of Justice (DoJ) is exploring Nvidia to evaluate whether the company’s commerce hones comply with antitrust laws. This ordinarily implies they are looking into potential anti-competitive behavior.
If Nvidia is found to have violated antitrust laws, it may confront noteworthy fines and punishments. The DoJ may force confinements on Nvidia’s trade hones or require the company to strip certain assets.
The investigation and any ensuing legitimate procedures might be expensive for Nvidia. Negative reputation related with antitrust investigation can hurt the company’s brand image.
2) Other Variables that too contributing to Nvidia’s Stock Dropped was generally Global Market down slant… The global market downturn, potentially fueled by concerns about economic growth, inflation, or interest rate hikes, may impact all sectors, including technology.
Why US DoJ is investigating Nvidia?
That’s might to check whether Nvidia has excessive market power or is involved in practices that limit competition.
Recently Nvidia has acquired other companies, the DoJ might be analyzing whether those deals might diminish competition in the particular markets.
Also to check that Nvidia is colluding with competitors to set costs misleadingly high.
To check whether Nvidia is forcing unfair terms on its customers or suppliers, such as requiring them to only deal with Nvidia or to refrain from dealing with competitors.
But It’s moreover vital to note that an investigation does not fundamentally proves that Nvidia has violated any laws. The US DoJ may basically be gathering data to check the fair decide is there any adequate prove to continue with a case.
Let’s see what happens in future stay connected and stay updated.