Nvidia's Subpoena and Market Impact

The recent subpoena received by Nvidia from the Department of Justice has raised concerns about potential antitrust violations, particularly regarding their market control in AI chip supply. The inquiry focuses on whether Nvidia's practices make it difficult for customers to switch to other suppliers, prompting a significant market reaction that resulted in a drastic $280 billion drop in company valuation in just one day. Despite this, the discussion highlights that this inquiry is not a formal investigation yet, but merely an inquiry, indicating that Nvidia may face only a fine rather than severe repercussions. Analysts suggest that the market reaction could have stemmed from profit-taking as Nvidia's stock had already surged over 120% year to date, highlighting the volatility in investor sentiment.