Nvidia Issued Subpoenas from DOJ in Antitrust Probe: What to Know
Nvidia stock is lower Wednesday after the U.S. Department of Justice subpoenaed the chipmaker. Here's what that means for investors.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Quiz: Do You Know How to Avoid the "Medigap Trap?"Quiz Test your basic knowledge of the "Medigap Trap" in our quick quiz.
-
5 Top Tax-Efficient Mutual Funds for Smarter InvestingMutual funds are many things, but "tax-friendly" usually isn't one of them. These are the exceptions.
-
AI Sparks Existential Crisis for Software StocksThe Kiplinger Letter Fears that SaaS subscription software could be rendered obsolete by artificial intelligence make investors jittery.
-
5 Top Tax-Efficient Mutual Funds for Smarter Investing
Mutual funds are many things, but "tax-friendly" usually isn't one of them. These are the exceptions.
-
Why Invest In Mutual Funds When ETFs Exist?Exchange-traded funds are cheaper, more tax-efficient and more flexible. But don't put mutual funds out to pasture quite yet.
-
Social Security Break-Even Math Is Helpful, But Don't Let It Dictate When You'll FileYour Social Security break-even age tells you how long you'd need to live for delaying to pay off, but shouldn't be the sole basis for deciding when to claim.
-
I'm an Opportunity Zone Pro: This Is How to Deliver Roth-Like Tax-Free Growth (Without Contribution Limits)Investors who combine Roth IRAs, the gold standard of tax-free savings, with qualified opportunity funds could enjoy decades of tax-free growth.
-
One of the Most Powerful Wealth-Building Moves a Woman Can Make: A Midcareer PivotIf it feels like you can't sustain what you're doing for the next 20 years, it's time for an honest look at what's draining you and what energizes you.
-
Stocks Make More Big Up and Down Moves: Stock Market TodayThe impact of revolutionary technology has replaced world-changing trade policy as the major variable for markets, with mixed results for sectors and stocks.
-
I'm a Wealth Adviser Obsessed With Mahjong: Here Are 8 Ways It Can Teach Us How to Manage Our MoneyThis increasingly popular Chinese game can teach us not only how to help manage our money but also how important it is to connect with other people.
-
Looking for a Financial Book That Won't Put Your Young Adult to Sleep? This One Makes 'Cents'"Wealth Your Way" by Cosmo DeStefano offers a highly accessible guide for young adults and their parents on building wealth through simple, consistent habits.
