Nvidia (NASDAQ: NVDA) shares declined by 2.3% in Frankfurt on Friday, following media reports of an antitrust investigation by the U.S. government. This development comes after rival chipmakers lodged complaints against Nvidia, alleging that it may have abused its market dominance in the AI chip sector.
The Information reported on Thursday that the U.S. Department of Justice has initiated an investigation into Nvidia based on these allegations. In response to the news, Nvidia’s shares fell 6.7% in New York on Thursday, marking a 22% decline from its record high in June. This drop also coincided with a broader sell-off in technology stocks throughout July.
Investors are becoming increasingly cautious about putting more money into stocks, given the skyrocketing valuations in 2024. As Nvidia, a perennial leader in the chip industry, faces new challenges, many are seeking high-potential opportunities elsewhere.
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