The U.S. Department of Justice (DOJ) issued subpoenas to Nvidia (NVDA) and other companies Tuesday. The subpoenas come as the DOJ continues its antitrust probe into Nvidia over its dominance of artificial intelligence (AI) processors, according to a report by Bloomberg. Nvidia's stock is trading lower Wednesday in response, adding to Tuesday's massive decline.
The subpoenas were issued to Nvidia and other technology companies to gather information and determine whether the California-based semiconductor firm is making it difficult for customers to switch suppliers and penalizing those who do not use its chips exclusively, Bloomberg said, citing people familiar with the matter.
"Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them," the company said in an emailed statement to Bloomberg. The DOJ declined Bloomberg's request for comment.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The subpoenas reportedly put the Department of Justice one step closer to launching a formal complaint.
Is Nvidia stock a buy, sell or hold?
Even though Nvidia has pulled back sharply in recent weeks, it's still up nearly 120% for the year to date and remains a long-time market beater. And Wall Street continues to think it's one of the best stocks to buy.
According to S&P Global Market Intelligence, the average analyst target price for NVDA stock is $148.66, representing implied upside of roughly 40% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial services firm CFRA Research has a Buy rating on the semiconductor stock with a $139 price target.
The company's better-than-expected second-quarter earnings results and upbeat third-quarter guidance increases confidence about demand for its H100 and H200 chips ahead of next year's Blackwell ramp, said CFRA Research analyst Angelo Zino in an August 29 note.
"Bears will point to slowing sequential demand, recent margin pressures, and cycle concerns," he adds. "While those concerns will remain, investors should be more focused on AI structural gains and total addressable market expansion, a higher data center mix vs past cycles, and rising demand from non-hyperscalers."
Related Content
- Should You Buy Nvidia Stock After Earnings?
- Analysts' Top S&P 500 Stocks to Buy Now
- Best AI Stocks to Buy: Smart Artificial Intelligence Investments
-
10 Best Free (or Cheap) Online Classes for Seniors and RetireesCheck out these free or affordable online classes for retirees and grab some extra smarts.
-
This 401(k) Withdrawal Snafu Could Knock Your Portfolio off CourseFew financial advisers have heard of this 401(k) withdrawal issue. Here's how to safeguard your portfolio.
-
This 401(k) Withdrawal Snafu Could Knock Your Portfolio off Course
Few financial advisers have heard of this 401(k) withdrawal issue. Here's how to safeguard your portfolio.
-
Why Homeowners Should Beware of Tangled TitlesIf you're planning to pass down property to your heirs, a 'tangled title' can complicate things. The good news is it can be avoided. Here's how.
-
A Cautionary Tale: Why Older Adults Should Think Twice About Being LandlordsBecoming a landlord late in life can be a risky venture because of potential health issues, cognitive challenges and susceptibility to financial exploitation.
-
Home Equity Evolution: A Fresh Approach to Funding Life's Biggest NeedsHomeowners leverage their home equity through various strategies, such as HELOCs or reverse mortgages. A newer option: Shared equity models. How do those work, and what are the pros and cons?
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
Keep Tax Collectors at Bay with Muni Bond FundsMunicipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the FairwayThink of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
