DOJ Antitrust Probe Targets Nvidia; Supermicro Sinks 13% on Wider Investigations
NVDA is trading near its 52-week low of $148.8 (11% above the low) on elevated volume (3.7× avg).
Summary
Nvidia is now a target of a DOJ antitrust probe, according to Semafor, cited by Seeking Alpha. Two separate DOJ investigations involve Supermicro and Singapore-based data center firm Megaspeed, both examining the role of former Megaspeed executive Alice Huang, described as an alleged Chinese operative who had an affair with former CEO Jensen Huang. The US is also probing whether Alice Huang helped smuggle Super Micro products, Bloomberg News reports. The report says there is currently no indication that Nvidia or Jensen Huang face criminal charges. Supermicro shares fell 13% by noon Thursday on the news. The disclosure lands one day after Reuters reported the board moved to remove Jensen Huang and hours after his resignation was confirmed, so Nvidia is now absorbing a governance shock and a federal antitrust inquiry at the same time.
At the time of this announcement, NVDA was trading at $165.15 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $148.80 to $243.37. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.