Tuesday was not a good day for chip-maker Nividia as the US company suffered a record loss of nearly R5 trillion in market value. Shares of the AI heavyweight tumbled 9.5%, wiping out $279 billion in market capitalisation and sending shivers down the spines of most companies in the tech world as investors rethought their optimism about artificial intelligence. Nvidia indeed had the worst day in the history of the stock market, and suddenly the world’s most valuable company is in trouble.
Much of Tuesday's decline is being blamed on the US Justice Department which reportedly sent it a subpoena as part of the antitrust probe. Nvidia however said on Wednesday afternoon that it had not received a subpoena. “We have inquired with the US Department of Justice and have not been subpoenaed,” an Nvidia spokesperson said in a statement. “Nonetheless, we are happy to answer any questions regulators may have about our business.