Oracle Plans $45–$50 Billion Funding Push in 2026 to Expand Cloud and AI Infrastructure 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment 
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
Elon Musk’s SpaceX Acquires xAI in Historic Deal Uniting Space and Artificial Intelligence 
SpaceX Seeks FCC Approval for Massive Solar-Powered Satellite Network to Support AI Data Centers 
Palantir Stock Jumps After Strong Q4 Earnings Beat and Upbeat 2026 Revenue Forecast 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
Sam Altman Reaffirms OpenAI’s Long-Term Commitment to NVIDIA Amid Chip Report 
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
Anthropic Eyes $350 Billion Valuation as AI Funding and Share Sale Accelerate 
NVIDIA's stock dropped 10% today, wiping out $278 billion in market value. Investors reacted to news of a Department of Justice antitrust subpoena, alongside concerns over the company’s profit margins amid increasing chip production and supply chain disruptions.
Concerns Over NVIDIA's Margins and DOJ Antitrust Subpoena Trigger Significant Stock Decline
Investors endeavored to identify the root cause of the persistent decline in NVIDIA shares during Today's regular trading session. The stock experienced a decrease of approximately 10%, resulting in a $278 billion market capitalization loss and a new record for any public company, per Wccftech.
Some individuals cited the ISM manufacturing survey, released on September 3, as evidence of the most significant increase in inventories since the pandemic-induced disruption. Some individuals have expressed lingering concerns regarding the company's peaking margins as it increases the production of the Blackwell chips and continues to promote the previous-generation Hopper series of chips through its sales channels.
As a reminder, NVIDIA's most recent quarterly earnings announcement indicated a gross profit margin of 74.4 percent for the current quarter. This figure was lower than the actual margin of 76.7 percent and the guidance of 74.8 percent for the same quarter.
However, Bloomberg recently disclosed the primary cause, stating that the US Department of Justice (DOJ) has formally subpoenaed NVIDIA regarding its ongoing antitrust investigation. A small group of investors was aware of this development and was likely responsible for a significant portion of the erratic price action that has occurred today. If this is accurate, the SEC should conduct a thorough investigation.
DOJ to Focus Antitrust Probe on NVIDIA’s AI Services, While FTC Investigates Microsoft and OpenAI
Today's development results from a formula that the DOJ and the FTC reportedly agreed upon in August to divide the antitrust investigation workload between them. Under this agreement, the DOJ will focus solely on NVIDIA, while the FTC will take the lead on a broad-based antitrust probe against Microsoft and OpenAI.
The Department of Justice is expected to concentrate on NVIDIA's endeavors to establish itself as a comprehensive provider of AI services. This includes software-based solutions for AI model training and data center design optimization services by the "AI factory" vision of the GPU manufacturer's CEO, Jensen Huang. NVIDIA's offerings include dedicated AI accelerators like the H100 and the forthcoming GB200 chips.
