Semiconductor stocks traded with losses in the early session on September 4 after global semiconductor giant Nvidia Corp's share price fell over nine percent in trade overnight.
Nvidia Corp's stock tanked almost 10 percent as the US Department of Justice sent the firm subpoenas as it seeks to find evidence if the firm violated USA's antitrust laws. This move is an escalation into its investigation into the dominant provider of AI processors.
As a result, domestic chipmakers which closely track cues from the mother market, have fallen in trade. RIR Power Electronics, ASM Technologies, and SPEL Semiconductor, which have some amount of exposure in the domestic semiconductor space, all fell.
At 10:13 am, CG Power was trading lower by 0.06 percent, while RIR Power Electronics, ASM Technologies and SPEL Semiconductor tumbled around two percent.
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The DoJ, which had earlier sent out questionnaires to companies, is now issuing legally binding requests that compel recipients to provide information, according to sources familiar with the investigation. This move brings the government closer to filing a formal complaint.
Nvidia defended its tactics in the hot market for chips to power artificial intelligence in the face of reports the US is probing whether it abused its clout. "Nvidia wins on merit, as reflected in our benchmark results and value to customers, who can choose whatever solution is best for them," a spokesperson for the Silicon Valley-based chip-maker said.
While chip buyers do have options, Nvidia is considered the technology leader when it comes to AI chips even though rivals are working hard to compete.
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