NVIDIA inverse leveraged ETF soared 19%! Antitrust makes AI stocks tremble
During the sharp decline, there was an online rumor about Pelosi liquidating NVIDIA options, sparking market discussions. However, no official disclosure has been seen, and many investors have also expressed that it is fake news
At the close of the US stock market on Tuesday, chip giant NVIDIA plummeted by 9.5%, with a market value evaporating by $279 billion.
Other semiconductor stocks also experienced sharp declines, with TSMC, ASML, and others falling by over 6%, while AMD, Micron Technology, and others dropped by over 7%, and Intel, MRVL, and others plummeted by over 8%.
With a single antitrust investigation, NVIDIA evaporates $300 billion
According to Bloomberg, as the antitrust investigation deepens, the US Department of Justice has issued subpoenas to AI giants including NVIDIA. The report cited sources familiar with the matter, stating that the US Department of Justice had previously sent out questionnaires to companies for investigation, and is now issuing legally binding requests for companies to provide relevant information, bringing the government one step closer to formally filing a lawsuit.
NVIDIA holds over 90% market share in AI GPUs. Following the overnight plunge of 9.5%, NVIDIA has not yet stopped falling, with a further drop of nearly 3% in after-hours trading, resulting in a total market value evaporation of around $300 billion.
In NVIDIA's earnings report released last week, although the company's performance in the second quarter exceeded market expectations, the growth guidance for the third quarter was lower than investors' expectations, sparking concerns among investors about AI development. After the earnings report, NVIDIA experienced a stock price drop of over 6%.
Leveraged ETFs plummet, NVDL plunges by 19%, SOXL plunges by 22%
Inverse leveraged ETFs surge
Rumors of Pelosi liquidating NVIDIA, fake news?
In other news, rumors circulated that Pelosi had liquidated call options on NVIDIA, sparking market discussions. However, official disclosure information has not been seen, and many investors have expressed that it is fake news.
On the website unusual whales, which tracks politicians' stock holdings, no changes in Pelosi's holdings have been found.
Timeline of NVIDIA's antitrust investigation this year
On August 2, the US Department of Justice confirmed an antitrust investigation into NVIDIA.
The US Department of Justice launched an antitrust investigation into Nvidia, investigating whether it abused its dominant position in the AI chip market, requiring cloud providers to purchase multiple Nvidia products and charging customers higher prices for network equipment. Investigators have contacted Nvidia's competitors to gather more details.
In early June, media reports suggested that Microsoft, OpenAI, and NVIDIA might be investigatedAccording to The New York Times, sources revealed that the U.S. Department of Justice and the Federal Trade Commission have reached an agreement to allow them to continue their antitrust investigation into the monopolistic practices of Microsoft (MSFT), OpenAI, and NVIDIA (NVDA) in the artificial intelligence industry